NeuLion to acquire DivX
NeuLion, an enabler and provider of live and on-demand content to internet-connected devices, has signed a definitive agreement to acquire DivX, a provider of digital video solutions.
The total value of the transaction is approximately $62.5 million, consisting of $37.5 million in shares of NeuLion common stock and a $25 million two-year convertible note, subject to working capital adjustments. Last year, Rovi spun off DivX.
Bringing together NeuLionís managed services and DivXís technology products, NeuLion will be able to give customers the choice of either building and managing digital video platforms internally or licensing a fully integrated managed services solution.
ďBy delivering interactive viewing experiences to consumers watching live and on-demand content on digital platforms, from desktop to mobile to connected devices, NeuLion has built a roster of the best known brands in professional and college sports and TV Everywhere, such as NFL, NHL, NBA, UFC, Rogers and CCTV. Now, we are extending our franchise and bolstering our capabilities with our acquisition of DivXís entertainment and consumer electronics customers, advanced 4K video enabling technology products and expansive geographic reach,Ē said Nancy Li, CEO of NeuLion.
Added Kanaan Jemili, DivXís CEO, ďAs a leading provider of next-generation digital video technologies for Over-The-Top services across consumer electronics devices and mobile platforms, DivX has licensed its technology to global brands spanning consumer electronics manufacturers, entertainment content rights holders and cable network operators, such as LG, Samsung, Toshiba and Hisense. With our recently introduced end-to-end HEVC solution, DivX is helping to drive adoption of 4K video and live streaming. We are excited about the opportunity to extend our reach into the global marketplace while we continue to create technologies that bring high quality viewing experience to digital media consumers.Ē
Upon closing of the transaction, Nancy Li, NeuLionís chief executive officer, will become executive vice chairman of the NeuLion board of directors and will drive the technology vision for the company, and Kanaan Jemili, DivXís chief executive officer, will be appointed chief executive officer of NeuLion. The management teams and employees of both companies will be combined. NeuLion will now have offices and sales reach throughout North America, Europe and Asia.
Upon closing of the transaction, James Hale, DivXís chairman and managing partner at Parallax Capital Partners, LLC, and John Coelho, a member of DivXís board of directors and partner at StepStone Group LP, will join the NeuLion board of directors. As a result, NeuLion will expand its board to 11 seats.