STOCKHOLM – Tech maker Ericsson said Wednesday it has decided to sell 51% of its Media Solutions business to private equity firm One Equity Partners
Last March the company announced it was undertaking a strategic review of Media Solutions and its Red Bee Media division and would consider partnerships, divestments, and a continued in-house development. It has decided to hang on to Red Bee.
“Media Solutions and Red Bee Media are leading providers of media products and services, and with the performance improvements that are currently being implemented, we see future upsides to both businesses. We are confident that the direction we announce today will enable us to create the best long-term value, for both our customers and our shareholders,” said Börje Ekholm, Ericsson’s president and CEO, in the press release.
One Equity Partners, says the release, has deep expertise in media and telecom investments, and will further develop Media Solutions. Ericsson will retain 49% of the shares in the new company to be formed. “This structure will establish Media Solutions as a leading independent video technology company with strong and committed financial support driving continued investment in innovation and growth. The terms of the transaction were not disclosed.
Both Bell Canada (Fibe TV) and Telus (Optik) rely on the Media Solutions technology for their TV services.
Closing of the transaction is expected in Q3 2018 and is subject to customary closing conditions, including regulatory approvals.
After the transaction is closed, Ericsson’s share of the business will continue to be reported in segment Other.
For further details about Media Solutions and the new company, please see separate announcement: Ericsson brings in One Equity Partners as partner in growth of Media Solutions
As for Red Bee Media, Ericsson said it will continue to develop the unit as an independent and focused media services business
