Ericsson has agreed to acquire Envivio for $125 million. The acquisition will strengthen Ericsson's ability to help customers deploy new technologies and agile video processing for TV services.
Envivio's cloud-centric and software-based video offering will be a key addition to Ericsson's portfolio of media enrichment, processing, publishing, delivery, and TV platforms, enabling TV experiences on any device.
Envivio is an established provider of software-based video encoding with an installed base of over 400 TV service provider and content owner customers in all markets globally. Envivio generated revenues of $43 million during 2014 and is headquartered in San Francisco. The firm was founded in 2000 and has about staff of worldwide.
Tier one Envivio customers include Comcast, Cox Communications, Liberty Global, Sky, Telstra and Time Warner Cable. Envivio's advanced software solutions for pay TV and TV Anywhere applications perform software-based video encoding/transcoding, processing, packaging and ad insertion. Envivio's cloud-centric pure software video processing is available on Intel-based appliances or IT blade servers.
Per Borgklint, senior vice president and head of business unit support solutions at Ericsson, said: "Our consumer research clearly shows that viewers are demanding TV on their terms on any device, and expecting experiences that continually evolve. We are committed to offering our customers a clear path towards fully agile cloud agnostic platforms that delight TV consumers."
The acquisition will enhance Ericsson's software video encoding capabilities and its virtualised encoding concept, which enables abstraction of video processing functions from architectural and functional boundaries, enabling the flexibility to use both hardware and software based video compression, as well as any deployment architecture.
Ericsson's customers will benefit from a combination of market bespoke hardware and optimised pure software encoding that will deliver an accelerated route to next generation UHD/HD services and High-Efficiency Video Coding (HEVC) technology.