NOVATO -- Video management solutions provider Sonic Solutions (NASDAQ: SNIC) has agreed to acquire rival digital media company DivX (NASDAQ DIVX) in a stock deal worth about $323 million, it was announced today.
Sonic Solutions is expected to double its earnings in the deal, which values DivX shares at 40 percent over their Tuesday selling price.
San Diego-based DivX licenses its technology, which enables users to view video over a range of devices, to Samsung and Sony.
Sonic Solutions makes video management, editing and viewing software for both professional film makers and home hobbyists. It also licenses technology to OEMs.
"Our studio, storefront and consumer electronics partners agree they want a clear and efficient path to deliver premium content to their customers, said Dave Habiger, Sonic president and CEO. "The combination of Sonic and DivX promises to be the foremost provider of platforms, tools and technologies for the delivery of video entertainment to virtually any type of consumer electronic device."
Subject to approval of shareholders and regulatory agencies, the deal is expected to close in September 2010.