Parallax Capital Partners & StepStone Group to Acquire DivX; Leading Digital Video Technology Provider Will Operate as Standa...
March 31 2014 - 8:45AM
Marketwired
Parallax Capital Partners and StepStone Group to Acquire DivX;
Leading Digital Video Technology Provider Will Operate as
Standalone Business
SAN DIEGO, CA--(Marketwired - Mar 31, 2014) - Parallax Capital
Partners and StepStone Group announced today they have signed a
definitive agreement to acquire DivX LLC and its subsidiaries,
including the MainConcept entities, from Rovi Corporation (NASDAQ:
ROVI) for $75 million in a combination of cash and additional
deferred contingent payments. San Diego based Karmel Capital
assisted DivX management in the transaction. DivX is a leading
provider of advanced end to end solutions that enable a superior
high quality video experience on virtually any device or
platform.
Based in San Diego CA with operations in Russia, Germany, Japan,
China, and Korea, DivX counts 200 million plus users of its proven
video playback offerings on board over 1 billion devices. DivX is a
pioneer in creating and delivering technologies that allow media
customers to access quality content across the entire range of
network conditions common in today's multi-screen lifestyle.
Last year DivX introduced an end to end HEVC solution to
accelerate the adoption of the latest video compression standard
enabling highly efficient 4K Ultra HD content on a variety of
devices. The new HEVC solution won a series of Best in Class awards
at the 2014 CES in Las Vegas, NV. HEVC compression can reduce
bandwidth usage for video distribution up to 50% according to
recent benchmarks.
James Hale, Managing Partner Parallax Capital Partners
commented, "DivX has an established leadership position in the
digital video market place widely recognized for their expertise
and innovation driven by a strong management and delivery team. We
are excited to help author the company's next chapter as a premier
supplier of innovative answers for content providers, OTT (
Over-The-Top) delivery, service providers, multi-screen 4K/Ultra HD
playback, live IP based content delivery and more."
"The StepStone and Parallax teams recognize the unique value of
the DivX and Main Concept businesses in the strategic landscape
offering a complete solution," said Dr Kanaan Jemili DivX CEO "We
are enormously excited to have such a strong group of investment
partners with us as DivX leads the way to a better more seamless
consumer video experience in the future."
DivX will be exhibiting at the NAB 2014 in Las Vegas, NV April
7-10 in booth SU-9110, Attendees will have the opportunity to view
live demonstrations of the company's end to end solution powering
the creation, protected delivery and multi- screen playback of next
generation video, including 4K content using the new compression
standard HEVC.
About DivX
DivX is a leading provider of next-generation digital video
technologies for Over-The-Top services from content preparation, to
protected delivery and multi-screen playback of high-quality video
across consumer electronics devices and mobile platforms. DivX,
along with its subsidiary MainConcept, is accelerating the adoption
of the HEVC/H.265 video standard across the video supply chain with
solutions for 3rd party software integration, transcoding
applications, and protected playback on consumer electronics
devices. The MainConcept industry-leading SDKs provide an extensive
library of digital video components, from industry standard codecs
to support for next generation video standards as well as support
for professional camera formats. MainConcept SDKs enable software
developers to integrate video and audio support into their
applications, services or environments
About Parallax Capital Partners
Parallax Capital Partners (www.parallaxcap.com), is a private
equity firm focused on acquiring and operating application software
and related services companies. Since 1999, Parallax has acquired
over 20 companies. Parallax's previous and current portfolio
companies generate over $1.5 billion of annual revenues and have
provided significant returns for its investors, partners and
employees. Parallax has built an exceptional track record of
transitioning divisions, subsidiaries and product lines into
successful stand-alone entities.
About StepStone Group
StepStone Group (www.stepstoneglobal.com) is a global private
markets firm overseeing more than $60 billion of private capital
allocations, including approximately $11 billion of assets under
management. StepStone creates customized portfolios for the world's
most sophisticated investors using a highly disciplined
research-focused approach that prudently integrates fund,
secondary, mezzanine and co-investments. StepStone has over 110
professionals, which includes 18 Partners, located on three
continents. StepStone is an active investor in all private markets
strategies, including buyout, credit, venture, distressed,
mezzanine, energy, infrastructure and real assets in all major
geographies, including North America, Europe, Asia, Australia,
Latin America, Middle East and Africa.
About Karmel Capital Karmel Capital (www.karmelcap.com) is a
private equity and M&A advisory firm focused on technology
spin-outs. Karmel Capital works with public company parents,
management teams and financial partners to make complex deals
happen and to turn struggling business units into successful
standalone companies. Karmel Capital was founded in 2013 and has
completed multiple technology spin-outs including: Snaptracs
(www.tagg.com) a spin-out from Qualcomm, Inc. (NASDAQ: QCOM). Burl
Concepts (www.burlconcept.com) a spin-out from UC San
Diego. Feniks, Inc. (www.hellorubi.com) a spin-out from
Outerwall, Inc. (NASDAQ: OUTR).
For DivX Inquiries: Tom Huntington Vice President Marketing
Email Contact 619-743-9057
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