Ericsson intends to acquire Technicolor's audiovisual division

With this operation, Ericson would see its presence in the audiovisual industry reinforced, confirming its intention to compete in the long term and grow in this business segment.

The Swedish Ericson has launched a binding offer to acquire the audiovisual broadcasting services division of the French company Technicolor for 19 million euros.

According to Ericsson, this operation, which is still subject to approval by regulatory authorities, has a potential profit of up to 9 million euros for the year 2015, depending on the expected revenues in the area of ​​audiovisual services.

After the purchase, Ericson would incorporate Technicolor's 900 professionals into its workforce, reinforcing its presence in markets such as French, English and Dutch.

At the same time, Ericson would see its presence in the audiovisual industry reinforced, confirming its intention to compete in the long term and grow in this business segment.

Ericsson's Vice President and Head of Global Services Business Unit, Magnus Mandersson, stated that “teaming up with a trusted partner enables television and radio networks to address increasing technological and commercial complexity, as well as compete in the television market. We combine our leading service and technology with strategic investment in the development of operations, capacity and competence in the audiovisual area.”

For his part, Technicolor CEO, Frederic Rose, maintains that this transaction is “consistent” with Technicolor's strategy of focusing on monetizing solutions, growing the business and strengthening its balance sheet.