James Delahunty
15 Nov 2007 16:14
DivX Inc. has announced that it has acquired MainConcept AG, a leading provider of H.264 and other high-quality video technologies, in a stock and cash transaction valued at approximately $22 million. A further $6 million may be paid if certain goals for MainConcept development are met. MainConcept designs, manufactures and markets a wide range of high-quality video and audio technology based on industry standards.
"This is a great partnership that we believe will prove beneficial to both MainConcept and DivX," said Markus Moenig, CEO and Founder of MainConcept AG. "Our product suites and business models are highly complementary, and our combined companies offer a rich solution for the creation, distribution and playback of high-quality video across virtually any platform or device. We look forward to bringing these two great teams together."
"We are extremely pleased to add MainConcept to the DivX family," said Kevin Hell, CEO of DivX. "Company founder Markus Moenig, our new Senior Vice President, has worked with a talented team of engineers to build a successful company with award winning next-generation codec technology that is highly complementary to the core DivX licensing business. MainConcept's H.264 technology is expected to increase our market opportunity and speed our penetration of key emerging product categories, including mobile, HDTV, set-top boxes and digital still cameras. With this combination, we are executing on our strategy to deliver a seamless and simple digital media experience where any piece of content plays back on any kind of device, and formats and codecs are completely transparent to the end-user."
Source:
Press Release