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.
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, , Editor-in-Chief, Light Reading