This announcement and the information contained herein are restricted
and are not for release, publication or distribution, in whole or in
part, in or into the USA, Canada, Australia or Japan.
Ericsson (NASDAQ:ERIC) today announces a voluntary public cash offer
to acquire Tandberg Television (OSE:TAT) for NOK 106 in cash per
share (the "Cash Offer"), or an aggregate price of approximately SEK
9.8 billion. The Cash Offer represents a premium of 18.2 percent to
Tandberg's 90-day volume weighted average stock price. The Cash Offer
also represents a premium of 10.4 percent or NOK 10 per share to the
proposed mixed cash/share offer announced January 15, 2007 by Arris.
* Ericsson offers NOK 106 per share in cash
* A total consideration of SEK 8.9 b. after deduction of net cash
* Ericsson has acquired 11.7% of the outstanding shares in Tandberg
Television and entered into agreements for irrevocable acceptances
for the Cash Offer in respect of further approximately 13% of
Tandberg Television's outstanding shares
* EPS accretive from 2007, excl. possible depreciation of intangibles
* Significant step toward world leadership position in IPTV
* Expands Ericsson's customer base to include cable and satellite
operators as well as broadcasters
Carl-Henric Svanberg, president and CEO, Ericsson, says: "IPTV for
cable and telecom operators is the biggest networked multimedia
opportunity going forward. Ericsson and Tandberg Television is a
strong combination with a unique ability to offer complete IPTV
solutions. Tandberg's leading TV technology and customer base and our
global presence and strong position in IP networks and IMS, will
create a leading player in networked media solutions for telecom,
cable and satellite operators as well as media companies."
A large part of the expected traffic growth in the world's mobile and
fixed networks is expected to be generated by TV services. Tandberg
is a world-leader in video head-end, encoding and compression
technology critical to maximize picture quality while minimizing
bandwidth in video applications. This technology is a key part of
IPTV solutions. Tandberg is particularly strong in MPEG-4 which is
critical for cost effective delivery of High Definition TV. In
addition, Tandberg offers on-demand and interactive video solutions.
IPTV is key in multimedia offerings from telecom operators as well as
cable and satellite operators. Today the majority of digital TV
network investments are made by cable operators while telecom
operators are quickly increasing their investments from a lower
level.
With the majority of sales in cable/satellite and the growing telecom
business, Tandberg has built a premiere customer base with customers
in more than 100 countries. The company has over 200 patents granted.
The European and North American operations are headquartered in
Southampton, UK and Atlanta, US.
Tandberg Television employs 870 people, including more than 370 video
and software engineers. Tandberg's revenues in 2006 were USD 350
million with a growth of 21%. EBITDA reached 21% in 2006. Since 1997,
Tandberg Television has been listed on the Oslo Stock Exchange,
Norway.
Upon completion of this transaction, Tandberg Television will become
a wholly owned subsidiary of Ericsson. In combination with Ericsson's
existing products the combined companies will be uniquely positioned
in offering complete IPTV solutions.
The acquisition offers time and revenue synergies from cross-selling
and is expected to be accretive from 2007, excluding depreciation of
acquired intangibles.
The acquisition will be conducted by means of a public voluntary cash
offer for all of the 80,529,876 outstanding shares in Tandberg
Television, which values all the outstanding shares to NOK 8.5 b.
The Cash Offer is subject to the satisfaction of all the conditions
set out below:
1. Receipt of acceptances for more than 90 percent of the shares and
votes outstanding;
2. That all necessary approvals and clearances from authorities have
been obtained on terms acceptable to Ericsson;
3. That prior to completion of the Cash Offer there are no actions,
changes, events, violations, circumstance, information or effects
that are or are reasonably expected to become, materially adverse to
the value, business, assets (including intangible assets),
liabilities, capitalization, financial conditions or results or
operations of the company or the company if controlled by Ericsson
("Material Adverse Change"), nor that the acquisition of or value of
the shares in Tandberg Television is rendered partially or wholly
impossible or significantly changed or impended as a result of
legislation, regulation, change of control, any decision of court or
public authority, or other comparable measures, including actions by
Tandberg Television or any third party actions, beyond Ericsson's
control.
Ericsson reserves the right, in its sole discretion, at any time to
waive in whole or in part, one or more of the conditions to the Cash
Offer and with respect to the condition (1) above, to complete the
Cash Offer at lower level of acceptance.
An offer document regarding the Cash Offer is expected to be
published this week. Completion of the Cash Offer is subject to the
satisfaction of the conditions set out above and is expected before
the end of Q2 2007.
Ericsson has acquired 9,399,150 shares representing 11.7 percent of
all shares outstanding in Tandberg Television. Furthermore, holders
of approximately 13 percent of the outstanding shares and votes of
Tandberg Television have irrevocably agreed to tender their shares in
the Cash Offer.
SEB Enskilda acts as Ericsson's sole financial advisor in the
transaction.
Notes to editors:
Ericsson invites media, investors and analysts to a press conference
at the Ericsson headquarters, Torshamnsgatan 23, Stockholm, at noon
(CET), February 26.
Live webcasts of the press conference as well as supporting slides
will be available at www.ericsson.com/press and
www.ericsson.com/investors.
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries, Ericsson
is helping to create the most powerful communication companies in the
world.
Read more at: http://www.ericsson.com
FOR FURTHER INFORMATION, PLEASE CONTACT
Ericsson Media Relations
Phone:, +46 8 719 6992
E-mail: press.relations@ericsson.com
Ericsson Investor Relations
Phone: +46 8 719 4631
E-mail: investor.relations.se@ericsson.com
Ericsson Investor Relations, North America
Phone: +1 212 843 8435
E-mail: investor.relations@ericsson.com
The Cash Offer described herein has not commenced. The description
contained herein is neither an offer to purchase nor a solicitation
of an offer to sell shares of Tandberg Television.
Restrictions
The Cash Offer will not be made in any jurisdiction in which the
making of the Cash Offer would not be in compliance with the laws of
such jurisdiction.
Forward Looking Statement
This press release contains forward-looking statements, including
statements regarding the expected benefits of the acquisition, which
involve a number of risks and uncertainties. These statements are
based on Ericsson's current expectations and beliefs. Actual results
could differ materially from the results implied by these statements.
Factors that may cause or contribute to such differences include: the
risk that the conditions to the Cash Offer set forth will not be
satisfied, changes in both companies' businesses during the period
between now and the closing, developments in obtaining regulatory
approvals for the transaction; the successful integration of Tandberg
Television into Ericsson's business subsequent to the closing of the
acquisition; timely development, competitive products and pricing, as
well as fluctuations in demand; cost and availability of raw
materials; the ability to retain key management and technical
personnel of Tandberg Television and adverse reactions to the
proposed transaction by customers, suppliers and strategic partners.
Tandberg Television and Ericsson are under no obligation to (and
expressly disclaim any such obligation to) update or alter their
forward-looking statements whether as a result of new information,
future events or otherwise.