Ericsson to acquire media services company Red Bee Media

Ericsson has announced its intention to acquire Red Bee Media from an entity controlled by Macquarie Advanced Investment Partners, L.P.

The move, which is subject to regulatory approval, demonstrates Ericsson’s aims to grow in the broadcast services market and will add 1,500 employees, as well as media services and operations facilities in the UK, France, Germany, Spain and Australia.

Red Bee Media, founded in 2005, provides media services including media asset management, playout and digital video publishing, metadata services and creative services to broadcasters and broadband platforms.

Ericsson’s broadcast services business started in 2007 and expanded in 2012 with the acquisition of Technicolor’s Broadcast Services Division. As a result of the new acquisition, Ericsson’s UK business would grow to around 4,000 employees.

“Ericsson is making a step change to our business, cementing our commitment to TV and broadcast services and continuing a journey we started in 2007,” said Magnus Mandersson, executive vice president and head of business unit global services, Ericsson.

“We can create value for broadcasters by making digital content more accessible, enabling monetisation of TV content more efficiently. Video traffic shows very strong uptake in the mobile networks and Ericsson can address the need of both broadcasters and telecom operators through our technology expertise and services capabilities.”

The closing of the acquisition is subject to approval from the regulatory authorities and other contractual conditions. After completion, Red Bee Media will be incorporated into Ericsson’s Business Unit Global Services.