Harmonic up 10.6% after Ericsson buys Envivio

• Ericsson (NASDAQ:ERIC +1.1%) announced this morning it's buying Envivio, a provider of video processing hardware/software for delivering content to a variety of devices, for $55M.
• Ericsson, which has made a slew of acquisitions in recent years to lower its exposure to a slow-growing mobile infrastructure hardware market, plans to add Envivio to its TV and Media unit. In 2013, the company bought U.K. media/content service provider Red Bee Media, as well as Microsoft's Mediaroom IPTV infrastructure software unit. The year before that, the company bought Technicolor's broadcast services division.
• The deal appears to be fueling M&A hopes for Envivio rival Harmonic (HLIT); Sidoti has upgraded the company to Buy. With a current $546M market cap, Harmonic would be a bigger fish to swallow.