International. Ericsson announced its agreement to acquire Envivio, through a purchase offer for a price of $4.10 per share in cash, approximately $125 million. The acquisition will reinforce Ericsson as an innovator to deploy new technologies and agile video processing and innovate with services for the benefit of TELEVISION consumers.
The acquisition will strengthen Ericsson's video compression position, which combines its leadership in broadcasting and contribution with Envivio's leadership in multi-screen, cable and telecommunications. Envivio's software-centric, cloud-based video capabilities will be a key addition to Ericsson's extensive portfolio of media enrichment, processing, publishing, distribution and TV platforms, enabling TV experiences on any device.
Envivio generated revenues of USD 43 million during 2014 and is headquartered in San Francisco, CA. It was founded in 2000 and has a workforce of approximately 200 employees worldwide. Customers include Comcast, Cox Communications, Liberty Global, Cielo, Telstra and Time Warner Cable, with advanced software solutions from Envivio for pay TV and TV anywhere.
Under the terms of the definitive agreement, Ericsson will initiate a cash offer to acquire all outstanding shares of Envivio, with a merger following the completion of the tender offer. Some of Envivio's major shareholders, collectively owning approximately 34 percent of the outstanding common shares, have signed a bidding and support agreement with Ericsson by committing to tender all of its Envivio shares in the purchase offer and voting in favor of the merger. Envivio's board of directors has unanimously agreed to recommend shareholders to offer their shares to Ericsson in the public offering.
The acquisition is expected to close in the fourth quarter of 2015, subject to customary closing conditions.
