Rovi Corporation announced that it will sell its DivX and MainConcept businesses to Parallax Capital Partners and StepStone Group for $52.5 million, with the possibility of additional performance payments to a maximum of $75 million.
For more information visit: www.rovicorp.com
Undited press release follows:
Rovi Announces Sale of DivX and MainConcept Businesses
March 31, 2014 — Rovi Corporation (NASDAQ: ROVI), a global leader in entertainment discovery, announced it has entered into a definitive agreement to sell its DivX and MainConcept businesses. Rovi had previously announced its intent to sell the DivX and MainConcept businesses by the end of the second quarter of 2014 as part of Rovi’s strategic efforts to focus the Company on growth opportunities related to its core entertainment discovery technologies and services.
The DivX and MainConcept businesses were purchased by Parallax Capital Partners and StepStone Group. Under the terms of the agreement, Rovi will receive up to $75 million in a combination of cash and additional payments based on the achievement of certain agreed upon milestones. The transaction is expected to close by April 1, 2014.
“The sale of DivX was the last of a number of significant steps we’ve taken over the past year to realign the organization for sustainable, long-term growth and I’m pleased we met our commitment to complete this transaction, and did so ahead of schedule,” said Thomas Carson, President and CEO, Rovi Corporation. “We are now well-positioned to deliver innovative discovery solutions that help service providers and other companies involved in content distribution excite, personalize, and monetize the entertainment experience.”
“With over one billion DivX enabled devices worldwide, consumers can enjoy the highest quality video experience possible on the widest array of screens possible,” said James Hale, Managing Partner at Parallax Capital Partners. “We are excited to lead the company to its next level and look forward to continually advancing the role of DivX in the creation and distribution of secure and high quality video content.”
Wells Fargo Securities, LLC acted as financial advisor to Rovi with respect to the transaction.
About Rovi Corporation
Rovi is leading the way to a more personalized entertainment experience. The company’s pioneering guides, data, and recommendations continue to drive program search and navigation on millions of devices on a global basis. With a new generation of cloud-based discovery capabilities and emerging solutions for interactive advertising and audience analytics, Rovi is enabling premier brands worldwide to increase their reach, drive consumer satisfaction and create a better entertainment experience across multiple screens. The company holds over 5,000 issued or pending patents worldwide and is headquartered in Santa Clara, California. Discover more about Rovi at www.rovicorp.com .
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 (https://www.stepstoneglobal.com) is an independent firm focused exclusively on providing private equity asset management and advisory services. The firm oversees more than $60 billion of private equity allocations and has offices in San Diego, New York, Beijing, and London. StepStone provides investment services to institutional investors focused on achieving superior risk-adjusted private equity returns through a combination of private equity fund investments, co-investments and secondary purchases. StepStone has a proprietary research based approach to optimizing exposure to top performing investment strategies, geographies and managers.