Ericsson will buy Technicolor's Broadcast Services division.

Technicolor today announced that it has received a binding offer for its Broadcast Services business from Ericsson ERIC), the world leader in communication technologies and services. 13 March 2012, Paris (France) – Technicolor (Euronext Paris: TCH) today announced that it has received a binding offer for its Broadcast Services business from Ericsson (NASDAQ:ERIC), the world leader in communication technologies and services.

The offer includes a purchase price of €19 million and a possible earn-out of up to €9 million based on 2015 Broadcast Services earnings.

Broadcast Services at Technicolor

includes play-out services, live production assistance, and media asset management. It employs roughly 900 people in three countries: France, the United Kingdom, and the Netherlands (as of January 2012).

Ericsson, the world leader in communication technologies and services, is focusing more on the broadcast sector right now. The Broadcast Services activity will be better positioned to grasp new market opportunities after being divested to Ericsson, which has managed services as one of its core areas.

This deal will help

Technicolor continue to leverage its existing portfolio, optimize its investment allocation, and generate free cash flow, as defined in its 2012-2015 strategic roadmap, which was unveiled on February 24, 2012. Technicolor's aim of decreasing debt and allocating capital investments to its other companies will be aided by the transaction.

“This acquisition is consistent with Technicolor's plan to focus on media monetization solutions, new growth companies, and enhance its balance sheet,” said Frederic Rose, CEO of Technicolor. Managed services are a core business for Ericsson, and the Broadcast Services activity will benefit from the company's know-how and global scale required to be a prominent participant in the global broadcast sector after this divesture is completed.”

Magnus Mandersson

Ericsson Executive Vice President and Head of Business Unit Global Services.

“As the television industry transitions to multi-platform, on-demand television, working with a trusted partner enables broadcasters to meet the increasing commercial and technological complexity and competition in the TV market,”

“We combine our industry-leading service and technology with significant investments in playout operations, broadcast capacity, and expertise. ”

Before any prospective earn-out,

the transaction's net disposal proceeds will be allocated to the reinstated debt's prepayment. This transaction has no impact on the FY 2012 projection issued on February 24.

The transaction is scheduled to close in the second half of 2012, subject to the usual regulatory administrative clearances and consultations.

Leading the way in broadcast services innovation

We can assist you in delivering creative content through a robust global media network, which is backed up by international field services and special events teams, as well as our global broadcast operations centers.

With the help of Sislink Broadcast Services, you can deliver amazing content all over the world.

High-quality material reaches audiences thanks to end-to-end administration, enhanced monitoring, and real-time reporting services. We can also help you boost the value of your material and connect you with a network of media providers and owners who can assist you in growing your business. Our knowledgeable team can assist you with any media need you may have.

We provide our clients with the technology,

knowledge, know-how, and worldwide network they need to create incredible projects. We provide a full suite of industry-leading solutions for broadcast and live events, as well as a full suite of media management solutions. We provide tools to enable you create, manage, and share your content anywhere, at any time, on any platform.