Ericsson tops Arris' offer for Tandberg TV
Swedish telecommunications group Ericsson has offered SEK 9.8bn (£707m; $1.4bn) to acquire video compression specialist Tandberg Television. The cash offer for Tandberg Television's shares represents an 18.2% premium to Tandberg's 90-day average share price, and a premium of 10.4% to the proposed $1.2bn cash and shares offer made for Tandberg last month by US-headquartered broadband network equipment maker Arris.
Ericsson, which has already acquired 11.7% of Tandberg Television's Norwegian-listed shares, said the acquisition was a "significant step" towards creating a world leadership position in internet protocol television (IPTV), and would expand Ericsson's customer base to include cable and satellite operators as well as broadcasters.
Ericsson CEO Carl-Henric Svanberg said: "IPTV for cable and telecom operators is the biggest networked multimedia opportunity going forward. Ericsson and Tandberg Television is a strong combination with a unique ability to offer complete IPTV solutions. Tandberg's leading TV technology and customer base and our global presence and strong position in IP networks and IMS, will create a leading player in networked media solutions for telecom, cable and satellite operators as well as media companies."
Tandberg Television has a global reputation for its video head-end, encoding and compression technology which is key to IPTV rollouts. Ericsson said Tandberg was "particularly strong in MPEG-4 which is critical for cost effective delivery of high-definition TV". Tandberg's board will now review the offer and issue a recommendation.
Telecommunications groups around the world are offering video services, bundled with high-speed internet access and voice telephony, in a bid to retain customers. Ericsson's most recent end-to-end IPTV solution is being provided to Vodafone Iceland.
Swedish telecommunications group Ericsson has offered SEK 9.8bn (£707m; $1.4bn) to acquire video compression specialist Tandberg Television. The cash offer for Tandberg Television's shares represents an 18.2% premium to Tandberg's 90-day average share price, and a premium of 10.4% to the proposed $1.2bn cash and shares offer made for Tandberg last month by US-headquartered broadband network equipment maker Arris.
Ericsson, which has already acquired 11.7% of Tandberg Television's Norwegian-listed shares, said the acquisition was a "significant step" towards creating a world leadership position in internet protocol television (IPTV), and would expand Ericsson's customer base to include cable and satellite operators as well as broadcasters.
Ericsson CEO Carl-Henric Svanberg said: "IPTV for cable and telecom operators is the biggest networked multimedia opportunity going forward. Ericsson and Tandberg Television is a strong combination with a unique ability to offer complete IPTV solutions. Tandberg's leading TV technology and customer base and our global presence and strong position in IP networks and IMS, will create a leading player in networked media solutions for telecom, cable and satellite operators as well as media companies."
Tandberg Television has a global reputation for its video head-end, encoding and compression technology which is key to IPTV rollouts. Ericsson said Tandberg was "particularly strong in MPEG-4 which is critical for cost effective delivery of high-definition TV". Tandberg's board will now review the offer and issue a recommendation.
Telecommunications groups around the world are offering video services, bundled with high-speed internet access and voice telephony, in a bid to retain customers. Ericsson's most recent end-to-end IPTV solution is being provided to Vodafone Iceland.
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