Sonic Solutions (SNIC) this morning said it signed a deal to acquire Divx (DIVX) for $3.75 a share in cash plus 0.514 Sonic shares for each Divx share, for total value of about $9.83 a share. Holders of both video production software tools companies need to approve the deal. Divx holders will own about 35% of the combined company.
Sonic said the deal will be accretive, potentially doubling FY 2012 non-GAAP EPS.
The company said the deal will give it “a more extensive solution for Internet video delivery,” including tools for content preparation in the cloud, video playback and Hollywood-approved DRM.
Current Sonic management will lead the company, along with key managers and execs from Divx, but Divx CEO Kevin Hell, CFO Dan Halvorson and general counsel David Richter will not stay with the combined company.
Sonic also said that for the fiscal fourth quarter ended March 31, it will report $26.4 million in revenue, with $1.2 million in net income and GAAP EPS of 4 cents. For the June quarter, the company expects abotu $25 million in revenue,
This morning:
- SNIC is down 75 cents, or 6.3%, to $11.08.
- DIVX is up $2.05, or 29.5%, to $9.
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