CES: NeuLion Buys DivX For $62.5M

NeuLion, a company that specializes in the delivery of live and on-demand video streams, said it will dive more deeply into OTT services, expand into new international markets, and accelerate its 4K video strategy following its $62.5 million acquisition of DivX, a maker of video encoding and delivery technologies.

The financial terms of the deal are comprised of $37.5 million in shares of NeuLion common stock and a $25 million two-year convertible note, subject to working capital adjustments.  At closing, NeuLion will issue 35.89 million shares of common stock at a set price of approximately $1.045 per share based on the five-day volume weighted average price for the stock as of the market close on Dec. 24, 2014.

NeuLion said the deal, expected to close in the first quarter of 2015, will allow it to pair its managed services with DivX’s technology products, giving customers the option to build and manage their digital video platforms internally or license a fully integrated platform.

For the full story go to Multichannel.com.