Parallax Capital Partners and StepStone Group to Acquire DivX; Leading Digital
Video Technology Provider Will Operate as Standalone
SAN DIEGO, CA -- (Marketwired) -- 03/31/14 -- 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 part
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
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
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:
Vice President Marketing
Press spacebar to pause and continue. Press esc to stop.