Ericsson makes $1.6 billion play for Tandberg TV, outpacing Arris offer
Ericsson has announced a voluntary public cash offer to acquire Tandberg Television for NOK 106 in cash per share, or an aggregate price of approximately SEK 9.8 billion. The Cash Offer represents a premium of 18.2 per cent to Tandberg’s 90-day volume weighted average stock price. The cash offer also represents a premium of 10.4 per cent or NOK 10 per share to the proposed mixed cash/share offer announced 15 January 2007 by Arris.
Carl-Henric Svanberg, president and CEO, Ericsson, 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.”
Upon receipt of the offer document from Ericsson, the Tandberg Television Board of Directors says it will review its terms and conditions, with the assistance of its financial and legal advisors, and will then provide the Tandberg Television shareholders with a recommendation. Until such time the company says it will make no further comment on the announcement by Ericsson.
Tandberg is a major player in video head-end, encoding and compression technology critical to maximise picture quality while minimising bandwidth in video applications. This technology is a key part of IPTV solutions. Tandberg is particularly strong in MPEG-4 which is critical for cost effective delivery of High Definition TV. In addition, Tandberg offers on-demand and interactive video solutions.
Upon completion of this transaction, Tandberg Television will become a wholly owned subsidiary of Ericsson. In combination with Ericsson’s existing products the combined companies will be uniquely positioned in offering complete IPTV solutions.