Posts Tagged ‘MainConcept’

Broadcast Vendor M&A: Rovi Sells DivX and MainConcept to Parallax Capital and StepStone Group for $75 Million

Broadcast Vendor M&A, SEC Filings | Posted by Joe Zaller
Apr 01 2014

Rovi has sold its DivX and MainConcept businesses to Parallax Capital Partners and StepStone Group in a cash and stock deal valued at up to $75m

Under the terms of the deal, Rovi will receive an initial payment of $52.5m, and may receive up to three earnout payments over the next three years that could add another $22.5m to the transaction price. Any earnout payments will be based on the achievement of upon certain milestones agreed by the parties in the transaction.

Rovi had previously its intention to sell the DivX and MainConcept before the end of the second quarter of 2014 as part of a strategic effort to focus on growth opportunities related to its core entertainment discovery technologies and services.

“The sale of DivX was the last of a number of significant steps we’ve taken over the past year to realign the organization for sustainable, long-term growth and I’m pleased we met our commitment to complete this transaction, and did so ahead of schedule,” said Thomas Carson, President and CEO, Rovi Corporation.

The sale price represents a significant drop in value for DivX, which was acquired by Sonic Solutions in June 2010 for $323m.  Less than six months later, Rovi acquired Sonic Solutions for $720m.  At that time, Rovi said the combination of Rovi and Sonic “will be able to power the next generation of digital entertainment offerings with content discovery, delivery, and enhanced interactivity capabilities that support advertising and drive consumer engagement.”

The transaction is expected to close by April 1, 2014.

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Related Content:

DivX Purchase Agreement

Press Release: Rovi Announces Sale of DivX and MainConcept Businesses

Press Release: Parallax Capital Partners and StepStone Group to Acquire DivX

Rovi to buy Sonic for $720 million

Sonic Solutions to buy DivX in $323M bid to become digital media leader

Sonic Solutions Integrates Newly Acquired MainConcept, Forms New Pro Technology Division

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© Devoncroft Partners 2009 – 2014. All Rights Reserved.

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Rovi Ends All Current Lawsuits Against LG, Licenses Patents for Use in All LG Products

Broadcast technology vendor financials, SEC Filings | Posted by Joe Zaller
Mar 04 2013

Electronic program guide technology provider Rovi disclosed through a regulatory filing that it has entered into a multi-year licensing agreement with LG Electronics for the use of its patent portfolio in “all LG products.”  Deal terms were not provided.

According to the filing, the new licensing agreement “includes the dismissal of all current lawsuits,” which presumably includes this complaint for patent infringement filed by Rovi against LG in May 2012 in the US District Court for Delaware.

The catalyst for the new arrangement between Rovi and LG may be the fact that LG recently won a patent infringement case filed by Rovi in German courts.

According to Korea Times article, Rovi filed for an injunction with the German court against LG Electronics in April 2012, to ban sales of its televisions, claiming LG has infringed on technology patents for its products.  The lawsuit came as LG Electronics rejected Rovi’s request to pay license fees for its patent. LG Electronics argued that the patent claimed by Rovi Corporation is irrelevant to its products, adding the U.S. firm’s stance on the scope of patent is “too broad.”

German Courts ruled in favor of LG in December 2012.

 

Re-Affirms Business Outlook

Rovi, which also owns Divx and codec provider MainConcept, used the filing to re-affirm its business outlook for 2013, saying that “while the settlement with LG was successfully achieved earlier in the company’s fiscal year 2013 than previously anticipated by the company, the company continues to expect the timing of adjusted pro forma revenue to be approximately 47% and 53% in the first and second halves of 2013, respectively.”

Rovi says it expects its adjusted pro-forma revenue for 2013 to be between $630m and $660m, and adjusted pro-forma income per common share to be between $1.90 and $2.20, excluding discontinued operations.  The company also said its revenue expectations for the fiscal first quarter, ending March 31, 2013, are unchanged from previously issued guidance.

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Related Content:

Rovi SEC Filing: Discloses LG Patent Licensing Agreement, and Dismissal of all Current Lawsuits

Korea Times Article: LG defeats patent infringement claims in German court

Rovi Complaint for Patent Infringement against LG Electronics, Delaware District Court May 2012

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© Devoncroft Partners. All Rights Reserved.

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Sonic Solutions Integrates Newly Acquired MainConcept, Forms New Pro Technology Division

Broadcast Vendor M&A | Posted by Joe Zaller
Oct 18 2010

Sonic Solutions announced today that it has formed a new professional technology division, which combines newly acquired MainConcept with Sonic’s existing professional products group.  MainConcept was previously a subsidiary of DivX, whose acquisition by Sonic was finalized earlier this month.   

Sonic, who also owns the Roxio brand, says that with the integration of MainConcept, it can now offer an expanded ‘one-stop-shop’ for companies that are looking to incorporate media management technologies into their products and services.

Because MainConcept’s codec technologies are widely deployed by a wide variety of broadcast technology vendors for ingest and transcoding applications the move brings Sonic into the professional broadcast market.  The company its new division will offer a broad range of products including authoring technologies, codec engines and a variety of SDKs.

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You can read the full Sonic press release about the integration of MainConcept here

You can read the full Sonic press release about the finalization of the DivX acquisition here

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