Ericsson acquires Fabrix Systems for $95m

deal  merger  picture: photo to go
deal merger picture: photo to go

The Ra'anana based cloud storage company is Ericsson's first acquisition in Israel.

Swedish technology giant Ericsson (Nasdaq:ERIC) has announced that it is acquiring Israeli cloud storage company Fabrix Systems in order to consolidate its position in network delivery for video applications, media storage and TV.

Fabrix Systems was founded in 2006 and has 93 employees in Ra'anana and 10 more in the US.

Fabrix Systems has a cloud based scale out storage and computing platform focused on providing a simple, tightly integrated solution optimized for media storage, processing and delivery applications such as cloud DVR and video-on-demand (VOD) expansion. The approach takes advantage of the latest advances in clustered storage; grid computing; virtualization and video processing technologies enabling a wide range of applications.

The acquisition will enable Ericsson to offer new services and migration to cloud DVR deployments in all TV platforms including Ericsson MediaFirst and Ericsson Mediaroom. It also adds to Ericsson's video-centric network and services capabilities to ensure that video can be managed, stored and delivered from the cloud to all TV Anywhere devices efficiently and with assured quality of experience.

Ericsson Senior VPand Head of Business Unit Support Solutions Per Borgklint said, "We are investing significantly across our TV platform and video-network areas to extend our market leadership position. Our Media Vision 2020 shows that traditional TV is shifting rapidly towards TV Anywhere and Ericsson's leadership in broadcast, video and networks places us in a unique position to enable the most demanding customers to define and deliver the future of TV. 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."

Fabrix Systems CEO Ram Ben-Yakir said, "TV service providers, particularly those with IP delivery networks, are accelerating their network architecture investments in video optimization to deliver on the promise of TV Anywhere. Through worldwide deployments of our cloud storage and computing capabilities, we have enabled leading TV service providers to provide consumer services such as DVR through cloud-based deployments, lowering costs and enabling a more unified consumer experience in content on-demand."

This is Ericsson's first acquisition in Israel although it opened an Israel branch in 1997, which today has 100 employees under CEO Alon Berman.

The acquisition is expected to close in the fourth quarter, 2014, subject to customary closing conditions. Fabrix Systems will be incorporated into Ericsson's Business Unit Support Solutions.

Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

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deal merger picture: photo to go
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