One Equity Partners is engaging in its second deal in January, following the purchase of IT consulting firm Rizing LLC. The private equity firm has now agreed to purchase a majority stake in Media Solutions, a media processing and TV service platform provider, from Ericsson (Nasdaq: ERIC).
Ericsson’s Media Solutions is a telecommunications company with a client list consisting of cable, satellite and other telecom service providers, in addition to major broadcasters. The Santa Clara, California-based target offers cloud DVR, television platforms, video decoding and processing, stream processing and advertising services.
As part of the deal, Ericsson will retain a 49 percent stake in Media Solutions. Additional terms of the transaction were not disclosed. The target serves more than 900 operators and media service providers.
One Equity is a middle market private equity firm that was founded in 2001 as Bank One's PE arm. In 2005, the firm became part of J.P. Morgan Chase & Co. (NYSE: JPM) in the same capacity and in 2015, One Equity became independent through a completed spinoff. The firm has offices in New York, Chicago and Frankfurt.
Media M&A is striking hot and expected to heat up even more, as technology disrupting traditional distribution and consumption habits grabs the interest of investors. The middle market has seen its fair share of media and marketing deals as well, including: Sinclair Broadcast Group Inc.’s (Nasdaq: SBGI) purchase of Tribune Media Co. (NYSE: TRCO) for about $3.9 billion; media billionaire Rupert Murdoch’s, through his company 21st Century Fox Inc., deal to acquire European pay-TV provider Sky Plc for nearly $14.6 billion; American Media Inc.’s agreement to buy Us Weekly from Wenner Media LLC; Moore Frères & Company’s completed purchase of Opera TV for its over-the-top (OTT) video streaming software; AMC Networks’ $65 million investment in RLJ Entertainment Inc. (Nasdaq: RLJE), a company backed BET founder Robert L. Johnson; Walt Disney Co.’s (NYSE: DIS) agreement to buy a stake in the video-streaming unit of MLB Advanced Media called BAMtech; Multimedia Platforms Inc.'s purchase of Next Magazine; and Southern Cross Group's acquisition of Grupo Expansion, one of Mexico's largest magazine publishers, from Time Inc. (NYSE: TIME).