Sonic acquires DivX for about $326 million
June 2nd, 2010 – Sonic Solutions said it will acquire DivX Inc. in a $326 million stock-and-cash deal as the digital-media provider moves to enhance online video offerings.
Holders of the maker of digital-media products such as video compression-decompression software will get 0.514 share of Sonic Solutions and $3.75 for each share, valuing the stock at $9.83 a share. That’s a 41% premium to Tuesday’s closing price.
Sonic expects the deal, which is planned to close in September, to potentially double its per-share earnings, excluding charges, in fiscal 2012, which starts April 1, 2011.
As part of its endeavor to improve its online video products, Sonic Solutions–which had traditionally provided software used to format, press and distribute about 90% of DVDs–has recently teamed up with Best Buy Co. for the transition to downloadable content.
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