[By NBC-1TV H. J Yook]Parallax Capital Partners and StepStone Group announced today they have signed a definitive agreement to acquire DivX LLC and its subsidiaries, including the MainConcept entities, from Rovi Corporation (NASDAQ: ROVI) for $75 million in a combination of cash and additional deferred contingent payments. San Diego based Karmel Capital assisted DivX management in the transaction. DivX is a leading provider of advanced end to end solutions that enable a superior high quality video experience on virtually any device or platform.

Based in San Diego CA with operations in Russia, Germany, Japan, China, and Korea, DivX counts 200 million plus users of its proven video playback offerings on board over 1 billion devices. DivX is a pioneer in creating and delivering technologies that allow media customers to access quality content across the entire range of network conditions common in today's multi-screen lifestyle.

Last year DivX introduced an end to end HEVC solution to accelerate the adoption of the latest video compression standard enabling highly efficient 4K Ultra HD content on a variety of devices. The new HEVC solution won a series of Best in Class awards at the 2014 CES in Las Vegas, NV. HEVC compression can reduce bandwidth usage for video distribution up to 50% according to recent benchmarks.

James Hale, Managing Partner Parallax Capital Partners commented, “DivX has an established leadership position in the digital video market place widely recognized for their expertise and innovation driven by a strong management and delivery team. We are excited to help author the company's next chapter as a premier supplier of innovative answers for content providers, OTT ( Over-The-Top) delivery, service providers, multi-screen 4K/Ultra HD playback, live IP based content delivery and more.”

“The StepStone and Parallax teams recognize the unique value of the DivX and Main Concept businesses in the strategic landscape offering a complete solution,” said Dr Kanaan Jemili DivX CEO “We are enormously excited to have such a strong group of investment partners with us as DivX leads the way to a better more seamless consumer video experience in the future.”