Thursday, November 15, 2007

DivX Buys MainConcept AG

San Diego-based DivX said Wednesday afternoon that it has acquired MainConcept AG, a developer of software for the H.264 video codec standard. The deal was worth $22M in cash and stock, plus up to $6M in earn out. MainConcept's video and audio codec is used in PCs, set-top boxes, mobile phones, and portable media players. According to DivX, the deal is expected to extend its products to additional platforms and formats. H.264, which is also known as MPEG-4 Part 10 and AVC (Advanced Video Coding) is a standard used for encoding video. DivX is a provider of technology used for encoding and decoding of digital video.