Digital media company Divx has acquired Mainconcept AG, a Germany-based provider of video technologies in a stock-and-cash deal valued at approximately $22 million..
Mainconcept designs, manufactures and markets video and audio technology based on industry standards such as H.264 video codec. Divx claims that the H.264 will enhance its common media language to additional platforms and formats.
Kevin Hell, chief executive at Divx said: MainConcept’s H.264 technology is expected to increase our market opportunity and speed our penetration of key emerging product categories, including mobile, HDTV, set-top boxes and digital still cameras.
We expect this acquisition to be accretive to our quarterly earnings in the second half of 2008, said Dan Halvorson, executive vice president and chief financial officer at Divx.
Digital media enterprises have recently made a trend of acquiring companies to enhance their product portfolios. In August 2007, Divx acquired digital video processing firm Veatros to enhance its real-time digital video processing and for producing video search and discovery services.
Earlier, Divx’s competitor On2 Technologies acquired Finland-based Hantro Products, a provider of video technology for mobile devices in May 2007.
Source: ComputerWire daily updates