Digital Entertainment Provider Rovi Acquires Sonic Solutions
To expand its entertainment services, digital entertainment company Rovi Corporation plans to acquire Sonic Solutions. The proposed acquisition of Sonic has an enterprise value of about $720 million, Rovi said on Thursday.
A provider of parental controls and interactive video systems like programming, Rovi plans to use technologies available to its TotalGuide customers to power Sonic's RoxioNow services, a move that will "result in accelerated uptake of premium content," according to the company.
"Rovi and Sonic share a vision for the future of digital entertainment and how to deliver the best consumer experience possible," said Rovi president and CEO Fred Amoroso. "We believe Sonic has built an exciting portfolio that complements Rovi's TotalGuide as well as our broad portfolio of solutions."
Sonic investors may opt to sell their shares to Rovi at $14 apiece, or receive 0.2489 Rovi share for each of Sonic that they hold. Sonic Solutions powers digital video streaming services, including Blockbuster movie streaming service, Best Buy's CinemaNow service, and its own RoxioNow service.
The combined company will continue to offer digital content services, along with new content discovery and engagement features designed to create a more interactive experience.
The deal is expected to close in the first quarter of next year.
In September, Rovi reached a multi-year agreement with Apple for access to Rovi's intellectual property, per a filing with the U.S. Securities and Exchange Commission. "The specific terms of the license agreement are confidential," read the filing.
The deal is likely related to Apple's Apple TV efforts, which will let users rent TV shows and movies and play back content purchased through iTunes.