PRZOOM - /newswire/ -
Santa Clara, CA, United States, 2014/03/31 - Rovi Corporation, a global leader in entertainment discovery, announced it has entered into a definitive agreement to sell its DivX and MainConcept businesses - ParallaxCap.com / StepStoneGlobal.com. NASDAQ: ROVI
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 (rovicorp.com) 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.
About Parallax Capital Partners
Parallax Capital Partners (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 (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.
Forward Looking Statements
All statements contained herein that are not statements of historical fact, including statements that use the words “will” or “is expected to,” or similar words that describe the Company’s or its management’s future plans, objectives, or goals, are “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results and/or from any future results or outcomes expressed or implied by such forward-looking statements. Such factors are further addressed in the Company’s most recent report on Form 10-K for the period ended December 31, 2013 and such other documents as are filed with the Securities and Exchange Commission from time to time (available at sec.gov). The Company assumes no obligation to update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release, except as required by law.