DivX, Inc. a digital media company, today announced it has acquired AnySource Media LLC, creator of a leading Internet Television streaming platform that allows users to directly connect their TV to a wide variety of content and services on the Internet, enabling hundreds of virtual on-demand channels.
"Internet TV will transform the landscape for media distribution and advertising as we know it," stated Kevin Hell, Chief Executive Officer, DivX, Inc. "The AnySource streaming platform combined with our high-quality device certification program and our deep relationships with both consumer electronics companies and Hollywood studios puts us in an enviable position in this rapidly emerging market. We look forward to bringing these two great teams together to realize our open, consumer-focused vision for digital media as it moves to a connected world."
Based in Malvern, PA, AnySource Media has developed a software solution that can support e-commerce transactions and enable rapid navigation and seamless playback of hundreds of virtual on-demand channels directly via HDTVs, Blu-ray disc players and other consumer electronics devices such as mobile phones. The AnySource Internet Video Navigator(TM) enables online video on a living room TV and easy access to Internet-based videos, music, photos, games and data content at the touch of a button through a standard remote control.
"AnySource is a solid strategic complement to DivX," said Mike Harris, Chief Executive Officer and co-founder, AnySource Media, and who has joined the DivX management team reporting to Kevin Hell. "We are very excited to join DivX to redefine the TV viewing experience for millions of consumers, leveraging DivX's technology and vast ecosystem which now includes more than 200 million DivX devices shipped into the market."
Total consideration for the acquisition is $7.5 million, paid in cash at closing, and additional cash payments up to $7.5 million payable over three years upon the achievement of certain technical, and revenue and distribution milestones.
"The acquisition of AnySource's technology platform and the addition of their talented team advance our development schedule by at least one year," said Dan Halvorson, Executive Vice President and Chief Financial Officer. "For the remainder of 2009, the acquisition will increase our headcount and integration costs by approximately $1.3 million, or $0.02 per diluted share, net of taxes."
