NOVATO -- Sonic Solutions Inc. (Nasdaq: SNIC) today said it completed its acquisition of San Diego-based DivX (Nasdaq: DIVX), a deal valued at $323 million when it was announced in July.
DivX's digital rights management technology for copy-protecting video on discs and streaming over the Internet is built into about 300 million consumer electronics devices worldwide, according to Sonic.
"The acquisition of DivX accelerates our vision to make accessing entertainment over the Internet directly from home and mobile devices as pervasive as physical disc consumption is today," said David Habiger, Sonic president and chief executive officer. "With DivX, we instantly add hundreds of millions of consumer electronics devices to our footprint; make it faster and more efficient for device manufacturers, retailers, and Studios to launch digital services; and increase our global reach, particularly in the European market."
Sonic's Roxio and RoxioNow divisions provide consumers, media companies, retailers and electronics manufacturers with DVD and Blu-Ray disc authoring and Internet streaming software, respectively. Best Buy, Blockbuster, Sears/Kmart, Cineplex Entertainment, HP, Dell and other retailers use RoxioNow for online video stores, and manufacturers such as Fujitsu, Funai Electric, LG, Panasonic, Pioneer, Samsung and Sony put the technology in more than 350 product models.
Sonic's stock price increased 84 cents a share, or more than 7 percent, at the close of trading today to $12.32 a share from Thursday's closing price. DivX's stock price was $9.62 a share when it last traded after hours Thursday, compared with the closing price of $8.79 when the acquisition was announced June 2.