One Equity Partners has announced that it has signed an agreement to acquire a majority stake in Media Solutions from Ericsson. Ericsson will continue to own a 49% stake in the company. Additional terms of the private transaction were not disclosed.
Over the last several years, Ericsson has provided Media Solutions’ products with a cloud-enabled, standards-based, integrated end-to-end road map. The overall mission has been to advance video service delivery with improved infrastructure and software. At the same time, all products and operations have been upgraded to match Ericsson’s carrier-grade standards for reliable telecommunications operations and services.
Upon completion of this transaction, Media Solutions will be positioned as an independent pure-play video software technology vendor. Ericsson said that all of Media Solutions’ software products, platforms and services have been re-engineered to support new media consumption patterns with microservices-based software and managed services that can be deployed in both public and private cloud infrastructures.
Media Solutions employees and contractors, as well as specified assets and liabilities, will transfer to a newly-formed company upon closing. Ericsson and One Equity Partners have said that they are committed to a seamless transition for employees, customers, partners and suppliers.
The transaction is subject to customary closing conditions, including regulatory approval.
Analyst Comment
Ericsson has been trying to get out of this business for some time, so the new deal is a good one for the firm (Ericsson out of media?). (BR)
