DivX Acquired By Sonic Solutions

San Diego-based DivX and Sonic Solutions said this morning that Sonic Solutions is acquiring DivX in a deal worth approximately $323M. According to the firms, Sonic would pay $3.75 in cash plus 0.514 shares of its common stock for each share of DivX. Sonic said the buy would help retailers, online services, Hollywood studios, and manufacturers of CE and mobile devices to distribute premium digital video content over the Internet. DivX is a developer of video encoding and decoding software, which it licenses to both software providers and consumer electronics manufacturers. As part of the deal, DivX CEO Kevin Hell, CFO Dan Halvorson, and EVP David Richter will be leaving the firm; no details on the impact on employment in San Diego was announced by the companies. DivX was advised by Oppenheimer & Co. in the deal.