Ericsson scoops up consultancy Devoteam's TV and media units
Ericsson is pushing further into the TV and media business with the acquisition of IT consultancy Devoteam's Telecom & Media operations in France. The move will see 400 French-based consultants with expertise in IP multimedia subsystems, delivery platforms and radio/TV networks join Ericsson by the second quarter.
Of note, the deal will see Ericsson acquire Devoteam's TV SmartVision operations, which is said to hold intellectual property assets. Financial terms of the deal were not announced.
"Acquiring activities of Devoteam adds unique expertise in complex, strategic and technical consulting engagements that will enable us to immediately enhance the value that we bring to our customers," Magnus Mandersson, Ericsson's executive vice president and head of its business unit global services, said in a statement.
The acquisition is in line with Ericsson's services strategy to broaden our IT capabilities, the company said.
Ericsson already has over 12,000 consultants having been boosted by the recent acquisitions of Telcordia for OSS/BSS, and more recently Tandberg and Technicolor Broadcast Services in the video market.
Separately, JP Morgan Chase has been appointed to explore options including a sale of ST-Ericsson, the money-losing semiconductor manufacturer joint venture owned by Ericsson and STMicroelectronics, according to a Wall Street Journal article, which cited unnamed sources.
An ST-Ericsson spokeswoman said the firm is working with an external advisor "to ensure the best possible future for ST-Ericsson," the WSJ reported.
STMicroelectronics indicated last month that it wanted to exit from the venture by the end of the third quarter of 2013. However, the WSJ claims that it remains unclear what financial reward the owners are seeking for the joint venture, and the process may not end in a sale.
- see the Ericsson release
- see this Reuters article
- see this WSJ blog post (sub. req.)
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