Ericsson to Acquire Envivio

Telecommunications software company Envivio Inc. said Thursday it agreed to be acquired by Telecom-equipment giant Ericsson in a deal valued about $125 million.

Under the terms of the agreement, Ericsson will pay Envivio holders $4.10 a share. The deal is expected to close in the final quarter of 2015.

San Francisco-based Envivio is slated to join Ericsson's TV and media business. The company makes software to process and distribute Internet protocol-based video.

Its customers—telecom companies and content providers—use the software to provide consumers with video on a range of devices, from smartphones to laptops. The company's software uses video compression and IP video networking technology that runs on industry standard hardware.

Ericsson shed jobs this year as it transitions from a hardware provider into a global leader in mobile-network software. The layoffs were part of the overhaul of Ericsson's business away from costly hardware into software and services. In 2004, 73% of the company's revenue came from hardware, and only 27% from software and services. By 2014, that mix had been almost completely reversed.

Write to Ezequiel Minaya at [e-mail]

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(END) Dow Jones Newswires

September 10, 2015 08:15 ET (12:15 GMT)

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