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Thursday, Mar 28, 2024
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New York-Based NeuLion to Acquire DivX

DivX LLC, a San Diego maker of video compression software, said it signed a definitive agreement to be acquired by NeuLion Inc., a New York-based provider of live and on-demand content to Internet connected devices.

Under the terms of the agreement, NeuLion will pay $62.5 million consisting of $37.5 million in NeuLion common stock, and a $25 million convertible note.

The transaction, which has been approved by the boards of both companies, is expected to close in the first quarter of this year.

Upon closing, NeuLion CEO Nancy Li will become executive vice chairman of NeuLion, while Kanaan Jemili, DivX’s CEO, will become the chief executive of NeuLion.

This is the second time that DivX has been sold. In 2010, it was acquired by Sonic Solutions. Later that year, Silicon Valley-based Rovi Corp. acquired Sonic.

Last year, two private equity firms, Parallax Capital Partners and StepStone Group purchased DivX from Rovi.

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