One Equity Partners becomes new majority owner in Media Solutions, Ericsson retains a 49% stake
Media Solutions to become a premier independent, pure-play video technology vendor
Closing expected Q3 2018
Ericsson (NASDAQ:ERIC, news, filings) is partnering with One Equity Partners, a private equity firm with deep expertise in media and telecom investments, which will become the majority owner of Media Solutions. This structure will establish Media Solutions as a leading independent video technology company with strong and committed financial support driving continued investment in innovation and growth. The terms of the transaction are confidential.
Over the last several years, Ericsson has transformed Media Solutions’ products with a cloud-enabled, standards-based, integrated end-to-end roadmap. The overall mission has been to advance video service delivery with state-of-the-art 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 a premier independent pure-play video technology vendor, with both hardware and software solutions. Today, all of Media Solutions’ next-generation software products, platforms and services have been reengineered to support rapidly evolving media consumption patterns with microservices-based software and managed services that can be deployed flexibly in both public and private cloud infrastructures. Media Solutions delivers these products and services at scale to:
9 of the top 10 global telecommunications companies
9 of the top 10 global cable companies
9 of the top 10 global satellite operators
8 of the top 10 broadcast/media companies
Highlights of Media Solutions’ business include:
TV platform used every day by over 18 million pay-TV subscribers in 26 countries and regulatory environments
Enabling the delivery of class leading digital media services to over 1bn homes globally
Recording 3m video assets daily, with over 200 petabytes of time-shifted video storage deployed
More than 100,000 events per second tracked by its combined analytics data warehouse
6 Technology and Engineering Emmys for our industry-leading technology
Angel Ruiz, who will continue to lead Media Solutions as the CEO, says: “The work we have done to integrate and advance our end-to-end roadmap is paying off in strong customer engagement. One Equity Partners brings valuable experience in the media and telecom sectors, and we’re confident that we have found the right partner to further develop and grow the business.”
Andrew Dunn, Managing Director of One Equity Partners, says: “We are thrilled to partner with Ericsson to grow Media Solutions. We look forward to supporting the customers of Media Solutions with continuing investment in strategic technology innovation.”
Jamie Koven, Senior Managing Director of One Equity Partners, says: “Angel and his team have done a great job with Media Solutions. The technology is industry-leading, the customers are world-class, and we are excited by the prospect of working with this team on the opportunity ahead.”
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 are committed to a seamless transition for employees, customers, partners and suppliers.
The transaction is subject to customary closing conditions, including regulatory approvals.
About Media Solutions
Ericsson Media Solutions has a longstanding and broad customer base in cable, satellite, and telecom service providers, as well as major broadcasters. Globally, Ericsson Media Solutions serves over 900 operators, service providers, broadcasters, content providers and aggregators. The wide-ranging media portfolio of end-to-end offerings includes Emmy award-winning hardware and software video compression solutions for Contribution and Direct-to-Consumer video service distribution, advertising and content personalization solutions, high efficiency Cloud DVR, and TV and video delivery platforms. Ericsson Media Solutions has approximately 1,600 employees operating out of multiple locations across the globe.
About One Equity Partners
One Equity Partners is a middle-market private equity firm focused on the industrial, healthcare, and technology sectors in North America and Europe. The firm builds market-leading companies by identifying and executing transformative business combinations. One Equity Partners is a trusted partner with a differentiated investment process, a broad and senior team, and an established track record generating long-term value for its partners. Since 2001, the firm has completed more than 150 transactions worldwide. One Equity Partners, founded in 2001, spun out of JP Morgan in 2015. The firm has offices in New York, Chicago, and Frankfurt. For more information, please visit www.oneequity.com.
NOTES TO EDITORS
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MORE INFORMATION AT:
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Ericsson is a world leader in communications technology and services with headquarters in Stockholm, Sweden. Our organization consists of more than 111,000 experts who provide customers in 180 countries with innovative solutions and services. Together we are building a more connected future where anyone and any industry is empowered to reach their full potential. Net sales in 2016 were SEK 222.6 billion (USD 24.5 billion). The Ericsson stock is listed on Nasdaq Stockholm and on NASDAQ in New York. Read more on www.ericsson.com.