Ericsson
OMX : ERIC
NASDAQ : ERIC

July 03, 2012 01:41 ET

Ericsson closes acquisition of Technicolor's broadcast services division

STOCKHOLM, SWEDEN--(Marketwire - Jul 3, 2012) -


 -- The acquisition will bring leading broadcast customers, about 900
    highly skilled professionals and playout operations in France, UK
    and Netherlands
 -- Ericsson is committed to continue to support existing customers and
    aims to become the leading global provider of managed services for
    broadcasters
 -- Technicolor's Broadcast Services Division will operate under the
    Ericsson brand as of today
 -- Purchase price of EUR 19 million and a potential earn-out based on 2015
    revenues of the Broadcast Services activity of up to EUR 9 million.

Ericsson (NASDAQ: ERIC), the world leader in communication technologies and services, today announces the completion of its acquisition of the Broadcast Services Division of Technicolor, a worldwide technology leader in the media and entertainment sector, headquartered in France. Today's closing follows the announcement on March 13, 2012.

Magnus Mandersson, Executive Vice President and Head of Business Unit Global Services, Ericsson, says: "With this acquisition Ericsson has strengthened its position in the broadcast managed services market and reinforced our growth ambitions. Managed services in one of the main focus areas for Ericsson and we will continue to invest and expand this area."

Ericsson welcomes over 900 exceptionally skilled employees who will be integrated into the Ericsson group in business unit Global Services over the coming months and will work under the Ericsson brand as of today.

Ericsson is the leading provider of managed services for telecom operators and has invested in processes and tools in this segment. With this acquisition Ericsson broadens its managed services offerings for media broadcasters and confirms the company's long term ambition and commitment to the area.

Ericsson is also the number one independent playout service provider in the Nordic countries. Managed services is an example of Ericsson's continuous innovation - after creating this business model for telecom operators over 15 years ago, Ericsson has recently taken this successful business model to other industries such as utilities and media.

NOTES TO EDITORS

Photo of Magnus Mandersson,

http://www.ericsson.com/thecompany/press/photolibrary/management

Global Services Press Kit

http://www.ericsson.com/thecompany/press/mediakits/services

About Technicolor

www.technicolor.com

Press release - Ericsson to acquire Technicolor's broadcast services division

http://www.ericsson.com/thecompany/press/releases/2012/03/1593417

Press release - Ericsson to operate TV4 Group's playout services

http://www.ericsson.com/news/1355548

Download high-resolution photos and broadcast-quality video at www.ericsson.com/press

Ericsson is the world's leading provider of communications technology and services. We are enabling the Networked Society with efficient real-time solutions that allow us all to study, work and live our lives more freely, in sustainable societies around the world.

Our offering comprises services, software and infrastructure within Information and Communications Technology for telecom operators and other industries. Today more than 40 percent of the world's mobile traffic goes through Ericsson networks and we support customers' networks servicing more than 2.5 billion subscribers.

We operate in 180 countries and employ more than 100,000 people. Founded in 1876, Ericsson is headquartered in Stockholm, Sweden. In 2011 the company's net sales were SEK 226.9 billion (USD 35.0 billion). Ericsson is listed on NASDAQ OMX, Stockholm and NASDAQ, New York stock exchanges.

www.ericsson.com

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Ericsson closes acquisition of Technicolor's broadcast services div.:

http://hugin.info/1061/R/1623638/519050.pdf

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:

(i) the releases contained herein are protected by copyright and other applicable laws; and

(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.

Source: Ericsson via Thomson Reuters ONE

[HUG#1623638]

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