Ericsson To Acquire Envivio - Quick Facts

(RTTNews) - Envivio, Inc. (ENVI) announced that it has entered into a definitive agreement to be acquired by Ericsson, a provider of communications technology and services.

As part of Ericsson's TV and Media business, Envivio will continue to work with its customers and partners to develop its current software based video solutions for video processing, delivery and monetization. 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, the company stated.

As per agreement terms, 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 company expects the acquisition to close in the fourth quarter of 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.