Digital video outfit NeuLion said today it has signed a definitive agreement to acquire streaming technology outfit DivX in a stock-and-debt deal valued at $62.5M. The purchase combines capabilities in over-the-top and 4K resolution video, and is aimed at further positioning NeuLion toward emerging market trends. NeuLion CEO Nancy Li in a statement said, "We are extending our franchise and bolstering our capabilities with our acquisition of DivX's entertainment and consumer electronics customers, advanced 4K video-enabling technology products and expansive geographic reach." Upon closing of the transaction later this quarter, Li will become Exec Vice Chair of the NeuLion's BOD and lead the company's technology efforts, while DivX CEO Kanaan Jemili will be CEO of the combined outfit. DivX has been bought and sold twice in the last five years, first purchased by Sonic Solutions in '10 for $323M, and then sold by Sonic parent Rovi to private equity firms last year for $75M. Sports will continue to be a major focus for the enlarged company, as NeuLion already holds formal relationships with most of the major U.S. pro sports leagues and a variety of collegiate entities.
