Ericsson (NASDAQ: ERIC) is enhancing its growing TV portfolio by acquiring Fabrix Systems, a provider of cloud storage, computing and network delivery for video applications, for $95 million.
By acquiring Fabrix, Ericsson will gain a cloud-based, scale-out storage and computing platform focused on providing a simple, tightly integrated system optimized for media storage, processing and delivery applications such as cloud DVR and video-on-demand.
What made Fabrix attractive to Ericsson was its approach, which uses a mix of clustered storage, grid computing, virtualization and video processing technologies. The Swedish vendor plans to integrate the technology with its MediaFirst and Mediaroom platforms.
"Fabrix Systems further positions Ericsson to help customers deliver on the Networked Society's global demand for personalized video content on any screen, at any time," said Per Borgklint, senior vice president and head of Business Unit Support Solutions at Ericsson, in a release.
After meeting customary closing conditions, Ericsson expects to close the Fabrix deal in the fourth quarter. At that time, Fabrix Systems will be incorporated into Ericsson's Business Unit Support Solutions division.
Ericsson's acquisition of Fabrix is part of the vendor's movement into the growing IPTV software space.
Besides Fabrix, Ericsson spent $25 million to acquire the Broadcast Services Division of Technicolor, giving it several big European broadcaster customers such as TV4, and about 900 employees. It also acquired Microsoft's (Nasdaq: MSFT) Mediaroom IPTV business and Red Bee Media.
- see the release
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