Ericsson said the deal “provides an ideal springboard for expansion into the region from its base in Abu Dhabi”.
Twofour54 currently provides playout services for nine different channels, including Baynounah and Clouds Media.
As part of the deal, Ericsson will establish a media hub in Abu Dhabi to provide content management, over-the-top (OTT), content discovery, metadata, creative and access services as well as playout services.
Ericsson head of broadcast and media services Thorsten Sauer said: “The Middle East is an exciting, high-growth region with a strong local and international broadcaster base.
“As the TV industry is witnessing a massive transformation in light of the convergence between IT, media and telecoms, Ericsson is helping broadcasters to overcome the challenges of this transformation and the fierce competition that exists in the rapidly changing TV market.
“The partnership with twofour54 is an important milestone in our ambition to provide industry-leading media services in this dynamic region.”
Twofour54 chief executive Noura Al Kaabi added: “Twofour54 is committed to the growth of the media industry across the MENA region. This long-term partnership with Ericsson is another step towards achieving our goal of being the region’s leading developer of a sustainable, private sector led media industry.”
Ericsson completed its acquisition of Red Bee Media in May last year. In 2012, it bought Technicolor’s broadcast services division.