Sonic Solutions has taken over the digital video company DivX for $323 million.
The company hopes that the acquisition will help to increase its share in the internet sharing and content delivery market.
DivX shareholders were offered payment of $3.75 and 0.514 shares of Sonic Solutions stock for each share of DivX they own, giving a total value of around $9.83 per share in DivX.
Dave Habiger, president and CEO of Sonic Solutions, commenting on the deal said (opens in new tab): "The combination of Sonic and DivX promises to be the foremost provider of platforms, tools, and technologies for the efficient delivery of premium video entertainment to virtually any type of consumer electronics device”.
DivX uses technology that compresses video segments whilst still allowing the content to retain high visual quality and is available on over 300 million devices across the world including Blu-ray players, DVD players and smartphones.
Market Watch (opens in new tab) reports that this deal is currently being investigated by a Levi & Korsinsky legal team to determine whether or not the DivX board of directors failed to adequately shop the company before sale, and whether Sonic Solutions underpaid for DivX shares.
DivX shares were valued by at least one market analyst at $10.50 per share.