(Telecompaper) Ericsson is expanding further in the broadcast sector with an agreed offer to acquire Envivio. Ericsson is offering USD 4.10 per share in cash, more than double Envivio's last closing share price, for a total price tag of USD 125 million. Ericsson said the acquisition will strengthen its position in video compression products, adding to its existing portfolio of media enrichment, processing, publishing, delivery and TV platforms for TV providers and broadcasters. Envidio specialises in software-based video encoding and counts a customer base of over 400 TV service provider and content owner customers around the world. Based in San Francisco, Envivio generated revenues of USD 43 million in 2014 and has a staff of approximately 200 employees worldwide. Top Envivio customers include Comcast, Cox Communications, Liberty Global, Sky, Telstra and Time Warner Cable. Its software for pay TV and TV Anywhere applications provides software-based video encoding/transcoding, processing, packaging and ad insertion. The software is available on Intel-based appliances or IT blade servers. Holders of 34 percent of Envivio's shares have already agreed to the takeover, and Ericsson expects the deal to close in Q4.