Online video platform NeuLion has completed the acquisition of DivX, a provider of video codecs and software for viewing and authoring.
The total transaction value was approximately $62.5m, comprised of 35.89 million newly issued shares of its common stock and a two-year convertible promissory note in the initial principal amount of $25 million subject to working capital credit of $2 million.
DivX CEO Kanaan Jemili will become CEO of the combined company, and NeuLion CEO Nancy Li will become Executive Vice Chairman of company’s board of directors
This is the fourth time in recent memory that DivX, a former publicly traded company has been acquired.
In 2010 DivX was acquired by Sonic Solutions $323m. At that time Sonic Solutions said it planned to form a new professional technology division, which combined DivX subsidiary MainConcept with Sonic’s existing professional products group in order to offer a ‘one-stop-shop’ for companies that are looking to incorporate media management technologies into their products and services.
Less than a year later, Sonic Solutions was itself acquired by acquired by Rovi for $720m.
In 2014 Rovi sold DivX and MainConcept to Parallax Capital and StepStone Group for $52.5m in cash, plus a maximum earnout of $22.5m
Press Release: NeuLion Completes Acquisition of DivX
Press Release: Rovi Announces Sale of DivX and MainConcept Businesses
Press Release: Parallax Capital Partners and StepStone Group to Acquire DivX
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