Ericsson (ERIC) has added a software-based video processing company to its portfolio.

The telecommunications giant this week finalized its acquisition of Envivio. Under the terms of the agreement, Envivio will remain a wholly owned subsidiary of Ericsson. 

Ericsson last month announced an agreement to acquire Envivio for approximately $125 million. 

Envivio CEO Julien Signès said he believed the Ericsson acquisition would allow his company “to accelerate the adoption of [its] software-based video solutions.”

“The uniting of Envivio’s pioneering software solutions and Ericsson’s strength in the marketplace is a great combination for our customers and stockholders,” he said in a prepared statement. “Ericsson shares a similar vision for the future of video processing and shift to software defined and virtualized encoding solutions.

Ericsson also noted that the Envivio addition “represents a strategic addition to [its] video compression portfolio with combination of software and hardware encoding.”

The Envivio acquisition is one of several Ericsson transactions this year.

For example, Ericsson in April acquired TimelessMind, a Canadian consulting and systems integration company. 

Ericsson said the TimelessMind acquisition complements its portfolio of consulting and systems integration services, along with its operations support system and business support system products.

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