Ericsson has secured a deal to acquire Microsoft's internet TV division Mediaroom for an undisclosed sum as it looks to take a leading role in the IPTV market.
The IPTV platform provides software that delivers IPTV to 22 million set-top boxes, including Deutsche Telekom's Entertain service as well as similar services offered by Telefonica and Swisscom.
Ericsson said the acquisition will help establish it as the leading provider of IPTV and multi-screen solutions, taking its market share over 25 percent.
Financial details of the deal have not been disclosed, but media reports suggest the sale is valued at around €115 million.
"Future video distribution will have a similar impact on consumer behavior and consumption as mobile voice has had," said Per Borgklint, Senior Vice President and Head of Business Unit Support Solutions at Ericsson.
"This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving over 11 million subscriber households. Mediaroom is the leading platform for video distribution deployed with the world's largest IPTV operators. This strategic acquisition positions Ericsson as an industry leader."
The global IPTV market has been estimated to reach 76 million subscribers and generate revenues of €24.5 billion this year, climbing to 105 million subscribers and €34.5 billion by 2015.
The deal builds on last week's deal between Ericsson and South Korea's leading satellite pay-TV provider KT SkyLife to introduce next-generation TV experiences.
The partnership with KT SkyLife, which has previously been a pioneer of new technology such as 3DTV and IP Hybrid set-top boxes, will lead to test transmissions of Ultra-High Definition TV and High Efficiency Video Coding to see if they can be used in multiple applications, the two firms announced.
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