Envivio shares double after a deal to be bought by Ericsson

In 2014 the company generated revenue of $43 million.

Telecom companies and content providers use the software to provide consumers with video on a range of devices, from smartphones to laptops. “We are committed to offering our customers a clear path towards fully agile cloud agnostic platforms that delight TV consumers”.

News of the acquisition was announced the day after Ericsson revealed it has been chosen to integrate DirecTV’s and AT&T’s TV platforms.

Envivio’s advanced software solutions for pay-TV and TV Anywhere applications perform software-based video encoding/transcoding, processing, packaging and ad insertion.

Ericsson said that the deal will strengthen its video compression standing and will extend its position in TV and media as a global end-to-end solution provider. The company makes software to process and distribute Internet protocol-based video. I look forward to welcoming the market leader in pure software-defined video encoding, processing, and packaging into Ericsson.

This will allow the delivery of products combining hardware and software encoding that will deliver an accelerated route to next generation UHD/HD services and High-Efficiency Video Coding (HEVC) technology.

Ericsson said it will pay $4.10 per share in cash for Envivio, whose shares closed at $1.90 (down 4 cents, or 2.06%) on Wednesday. The layoffs were part of the overhaul of Ericsson’s business away from costly hardware into software and services.

Ericsson is expanding further in the broadcast sector with an agreed offer to acquire Envivio.

Envivio’s board of directors has unanimously approved the offer, which is expected to complete in the fourth quarter.