Ericsson today announced that it has reached an agreement to acquire Microsoft's Mediaroom business.
The business will give Ericsson a boost in providing IPTV and multi-screen solutions.
Closing companies expect the deal to close during the second half of 2013. Financial terms of the agreement were not available. Mediaroom is situated in Mountain View, California and employs more than 400 people worldwide.
Per Borgklint, senior vice president and head of business unit support solutions at Ericsson said future video distribution will have a similar impact on consumer behavior and consumption as mobile voice has had.
"This acquisition contributes to a leading position for Ericsson with more than 40 customers, serving over 11 million subscriber households," Borglint said.
Microsoft Mediaroom is the TV technology behind services such as AT&T U-verse, Entertain of Deutsche Telekom, Telefonica, TELUS Optik TV and Swisscom.
Ericsson said the acquistion will help it evolve TV anywhere solutions, as well as push the convergence of screens such as mobile and home.