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Ericsson Buys Cloud Video Firm for $95M

Ericsson has announced the $95 million acquisition of Fabrix Systems, which provides hosted storage, computing and video applications service delivery capabilities that support the cloud DVR services of telcos and cable operators such as Cablevision. (See Ericsson to Buy Fabrix Systems.)

The move adds cloud DVR and VoD capabilities to Ericsson AB (Nasdaq: ERIC)'s video business, in particular its MediaFirst and Mediaroom platforms.

"Fabrix Systems further positions Ericsson to help customers deliver on the Networked Society's global demand for personalized video content on any screen, at any time," said Per Borgklint, head of Business Unit Support Solutions at Ericsson.

The acquisition of Fabrix, which has 103 staff and facilities in Princeton, NJ (sales and marketing) and Ra'anana, Israel (R&D), is set to close before the end of this year. IDT Corp. (NYSE: IDT), best known for its wholesale voice services, is the principal seller as it holds a 73% stake in Fabrix.


Want to know more about the video services and technology sector? Check out our dedicated video content channel here on Light Reading.


The purchase of Fabrix is just the latest in a string of video-related acquisitions by Ericsson, which is determined to build a solid position in video delivery and Service Provider Information Technology (SPIT) capabilities through its Business Unit Support Solutions. (See Ericsson Bags Azuki Systems, Ericsson to Buy Red Bee Media, Ericsson Buys Microsoft's IPTV Unit and Ericsson Offers $1.4B for Tandberg TV.)

And the news is just the latest in a string of video-related news announcements from Ericsson this week, as the vendor battles with other video heavyweights for attention at the IBC trade show in Amsterdam. (See IBC 2014: New Video Tech on Tap From Arris, Cisco, Pace & More, Ericsson Shows Off at IBC and Ericsson Takes Its 2020 TV Vision to IBC.)

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

abucek 9/15/2014 | 10:37:56 AM
Re: Commitment to video I know for a fact AT&T is migrating its Uverse platform to a cloud based offering which will be available on demand using Ericsson as the cloud service provider.  I am assuming Verizon is moving this direction as well with their cable TV offering as well.   HBO is also considering this move which would sell its service apart from a traditional cable subscription.  
[email protected] 9/12/2014 | 10:46:14 AM
Commitment to video Ericsson's commitment to the video sector is commendable -- obviously, it stands a better chance of working out if it has actually chosent the best/right assets to acquire.

Is there anyone in this industry that doesn't think that the storage, management and delivery of video content is going to be critical to the networking and communications services sector in the future (as well as now)? I doubt it -- this commitment to video looks like a caculated and clinical move, rather than a gamble, especially with the professional services know-how and weight to back it all up. 

It'll be interesrting to see when Ericsson starts breaking out its video revenues in its quarterly reports...
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