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2015-09-10

Ericsson: Ericsson announces agreement to acquire Envivio

* Acquisition extends Ericsson's leadership position in TV and Media as a
global end-to-end solution provider to enable customers to engage TV
consumers every day
* Ericsson to strengthen video compression position with combination of
software and hardware encoding
* Will bring deep competence in software-defined and cloud-enabled
architectures for video processing, enhancing Ericsson's virtualized
encoding approach

Ericsson (NASDAQ:ERIC) today announced its agreement to acquire Envivio
(NASDAQ:ENVI), by means of a tender offer for a price of USD 4.10 per share
in cash, or approximately USD 125 million in the aggregate. The acquisition
will strengthen Ericsson as a global innovator in enabling customers to
deploy new technologies and agile video processing to innovate new services
that engage TV consumers every day.

The acquisition will strengthen Ericsson's video compression position,
combining its leading position in broadcast and contribution with Envivio's
leadership in multiscreen cable and telecom. Envivio's cloud-centric and
software-based video capabilities will be a key addition to Ericsson's
extensive portfolio of media enrichment, processing, publishing, delivery,
and TV platforms, enabling TV experiences on any device.

Envivio is a global leader in software-based video encoding with an installed
base of over 400 TV service provider and content owner customers in all
markets globally. Envivio generated revenues of USD 43 million during full
year 2014 and is headquartered in San Francisco, CA. Envivio was founded in
2000 and has a staff of approximately 200 employees worldwide.

Tier one Envivio customers include Comcast, Cox Communications, Liberty
Global, Sky, Telstra and Time Warner Cable. Envivio's advanced software
solutions for pay TV and TV Anywhere applications perform software-based
video encoding/transcoding, processing, packaging and ad insertion. Envivio's
cloud-centric pure software video processing is available on Intel-based
appliances or IT blade servers.

Per Borgklint, Senior Vice President and Head of Business Unit Support
Solutions at Ericsson, says: "Our consumer research clearly shows that
viewers are demanding TV on their terms on any device, and expecting
experiences that continually evolve. We are committed to offering our
customers a clear path towards fully agile cloud agnostic platforms that
delight TV consumers. I look forward to welcoming the market leader in pure
software-defined video encoding, processing, and packaging into Ericsson. The
combination will strengthen our encoding position with both custom silicon
and pure software encoding, delivering performance and flexibility."

The acquisition will greatly enhance Ericsson's software video encoding
capabilities and its virtualized encoding concept, which enables abstraction
of video processing functions from architectural and functional boundaries,
enabling the flexibility to use both hardware and software based video
compression, as well as any deployment architecture.

Ericsson's customers will uniquely benefit from a cutting-edge combination of
market leading bespoke hardware and highly optimized pure software encoding
that will deliver an accelerated route to next generation UHD/HD services and
High-Efficiency Video Coding (HEVC) technology.

Envivio's customers will be able to rely on the global stability and scale and
the strong commitment of Ericsson in the TV and Media business with access to
Ericsson's full portfolio of products, solutions, and global services
expertise

Under the terms of the definitive agreement, Ericsson will commence a cash
tender offer to purchase all of Envivio's outstanding shares, with a merger
following the completion of the tender offer which would result in all shares
not tendered in the tender offer being converted into the right to receive
$4.10 per share. Certain of Envivio's major stockholders, collectively owning
approximately 34 percent of Envivio's outstanding common stock, have entered
into a tender and support agreement with Ericsson committing to tender all of
their Envivio shares in the tender offer and to vote in favor of the merger.
The acquisition is expected to close in the fourth quarter, 2015, subject to
customary closing conditions.

The board of directors of Envivio has unanimously agreed to recommend that
Envivio's stockholders tender their shares to Ericsson in the tender offer.

Once acquired the business will be reported as part of Segment Support
Solutions.

NOTES TO EDITORS

Ericsson at IBC 2015

At IBC 2015 in Amsterdam we are showcasing solutions and services that empower
customers to put the connected consumer at center stage in the new internet
era of television. We'll show how this is achieved through the delivery of
seamless experiences, personalized discovery, immersive content, and
constantly evolving services.

Ericsson will highlight how it sets itself apart with a unique combination of
consumer insights, industry-leading portfolio, and global transformation
services that are together helping customers embrace the opportunities of the
Networked Society.

You can find us at IBC in Hall 1, Stand 1:D61. Follow us during the event
using @EricssonTV and join the discussion using #IBCShow. Get the full media
kit athttp://www.ericsson.com/thecompany/press/mediakits/ibc2015

Ericsson is the driving force behind the Networked Society - a world leader in
communications technology and services. Our long-term relationships with
every major telecom operator in the world allow people, business and society
to fulfill their potential and create a more sustainable future.

Our services, software and infrastructure - especially in mobility, broadband
and the cloud - are enabling the telecom industry and other sectors to do
better business, increase efficiency, improve the user experience and capture
new opportunities.

With approximately 115,000 professionals and customers in 180 countries, we
combine global scale with technology and services leadership. We support
networks that connect more than 2.5 billion subscribers. Forty percent of the
world's mobile traffic is carried over Ericsson networks. And our investments
in research and development ensure that our solutions - and our customers -
stay in front.

Founded in 1876, Ericsson has its headquarters in Stockholm, Sweden. Net sales
in 2014 were SEK 228.0 billion (USD 33.1 billion). Ericsson is listed on
NASDAQ OMX stock exchange in Stockholm and the NASDAQ in New York

www.ericsson.com

www.ericsson.com/news

www.twitter.com/ericssonpress

www.facebook.com/ericsson

www.youtube.com/ericsson

FOR FURTHER INFORMATION, PLEASE CONTACT

Ericsson Corporate Communications
Phone: +46 10 719 69 92
E-mail:media.relations@ericsson.com

Ericsson Investor Relations
Phone: +46 10 719 00 00
E-mail:investor.relations@ericsson.com

ADDITIONAL INFORMATION

The tender offer for the outstanding common stock of Envivio has not yet
commenced. This communication is for informational purposes only and it is
neither an offer to purchase nor a solicitation of an offer to sell shares of
Envivio common stock. At the time the tender offer is commenced, Ericsson
will file a tender offer statement, containing an offer to purchase, a form
of letter of transmittal and other related tender offer documents with the
Securities and Exchange Commission (the "SEC"), and Envivio will file a
Solicitation/Recommendation Statement on Schedule 14D-9 relating to the
tender offer with the SEC. Envivio's stockholders are strongly advised to
read these tender offer materials, as well as any other documents relating to
the tender offer and the associated transactions that are filed with the SEC,
carefully and in their entirety when they become available, and as they may
be amended from time to time, because they will contain important information
about the tender offer that Envivio's stockholders should consider prior to
making any decisions with respect to the tender offer. Once filed,
stockholders of Envivio will be able to obtain a free copy of these documents
at the website maintained by the SEC at www.sec.gov or by directing a request
to Ericsson, Investor Relations, +46 10 719 00 00 or
e-mail:investor.relations@ericsson.com.

FORWARD-LOOKING STATEMENTS

This communication contains statements that are forward-looking. We want to
caution readers that any forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, may change based on various
factors. These forward-looking statements are based on current expectations
and assumptions that are subject to risks and uncertainties and actual
results could differ materially. Words such as "estimate," "target,"
"project," "plan," "believe," "expect," "anticipate," "intend" and similar
expressions may identify such forward-looking statements. Such
forward-looking statements include the anticipated changes in the business
environment in which Ericsson operates and Ericsson's future operating
results relating to the potential benefits of a transaction with Envivio and
the ability of Ericsson to complete the acquisition of Envivio, including the
parties' ability to satisfy the conditions to the transaction set forth in
the definitive agreement for the transaction. Actual results may differ
materially from current expectations because of risks associated with
uncertainties as to the timing of the tender offer and the associated
transactions; the possibility that various conditions to the consummation of
the transaction may not be satisfied or waived; the possibility that
competing offers or acquisition proposals will be made; the effects of
disruption from the transaction on the respective businesses of Ericsson and
Envivio; the risk that stockholder litigation in connection with the
transaction may result in significant costs of defense, indemnification and
liability; the fact that the announcement and pendency of the transaction may
make it more difficult to establish or maintain relationships with employees,
customers and other business partners; and other risks and uncertainties
pertaining to the business of Ericsson and Envivio detailed in their
respective filings with the SEC from time to time.

Forward-looking statements in this document should be evaluated together with
the many uncertainties that affect the businesses of Ericsson and Envivio, in
their 2014 Annual Reports on Form 20-F and Form 10-K, respectively, and in
their other reports with the SEC. The reader is cautioned not to rely unduly
on these forward-looking statements. Ericsson expressly disclaims any intent
or obligation to publicly update any forward-looking statements, whether as a
result of new informa...

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