Ericsson completes Envivio acquisition

NEW DELHI: Telecom equipment vendor, Ericsson said that it has completed  the acquisition of Envivio, a software-based video processing and delivery solutions company. The transaction was completed through a merger of its indirect wholly-owned subsidiary, Cindy Acquisition Corporation, with and into Envivio  . Envivio  survives the merger as a wholly-owned subsidiary of Ericsson.

The merger follows the successful completion of the tender offer by Ericsson for all shares in Envivio for the price of $4.10 per share. As of expiration of the tender offer, 26,385,322 shares (including 58,467 shares pursuant to guaranteed delivery procedures) were validly tendered and not withdrawn in the tender offer, representing in excess of 93 percent of Envivio's issued and outstanding shares. All validly tendered shares have been accepted for payment in accordance with the terms of the tender offer.

As a result of the merger, any Envivio shares not tendered in the tender offer have been converted into the right to receive $ 4.10 per share. In addition, options to purchase Envivio shares have been converted into the right to receive a cash payment equal to their net exercise value, based on the $4.10 per share merger consideration.

Notwithstanding the completion of the merger, Ericsson will pay for shares tendered via guaranteed delivery procedures promptly after delivery of those shares.

As a result of the merger, Envivio shares will be de-listed from the Nasdaq Global Select Market.

Envivio is a global leader in software-based video encoding with an installed base of over 400 TV service providers and content-owner customers in all markets globally. The deal will strengthen Ericsson’s position as a leader and global innovator in TV and media. It will enable Ericsson’s customers to deploy new technologies and agile video processing, and to develop innovative new services that engage TV consumers every day.

Today’s closing follows the announcement on September 10, 2015, that Ericsson was entering into an agreement to acquire Envivio by means of a tender offer for a price of $4.10 per share in cash, or approximately $125 million in the aggregate.