Sonic Solutions to acquire internet video services provider DivX for $323 million
02 Jun 2010
Video content technology firm Sonic Solutionssaid today that it will acquire its rival DivX for $323 million to expand into the internet video delivery business.
San Diego, California-based DivX is a leading digital media company and its brand is recognised worldwide having millions of consumers.
DivX technology, encoders for formatting video, decoders for playback, and digital rights management (DRM) for content protection, resides on over 300 million devices shipped into the global market from all major CE manufacturers including over 8,500 models of digital televisions, DVD and Blu-ray Disc players, and over 80 different mobile handsets.
Its clients like Samsung and Sony generated 13 per cent and 12 per cent revenues respectively for DivX in 2009.
Sonic will pay $3.75 per share in cash and 0.514 shares for each share of DivX and DivX will pay a termination fee of $8.35 million if it decides not to go ahead with the transaction.
Sonic, based in Novoto, California is a leader in developing technologies for the preparation and delivery of entertainment content in popular formats - CD, DVD, Blu-ray Disc and most recently Internet delivery of video.
