NeuLion is set to acquire DivX for $62.5 million, marrying the former’s delivery services with the latter’s software-based video player designed for use in any type of consumer device.

With the combination, NeuLion aims to give customers additional options for managing content, giving customers the choice of either building and managing digital video platforms internally or licensing an integrated managed services solution.

Both companies have been developing expertise to handle 4K (Ultra HD) video, especially for delivery on broadband channels (over the top/OTT). Separately, DivX made several announcements at CES regarding 4K video delivery.

With the acquisition, NeuLion will also automatically extend its reach in more markets globally. Current clients include the NFL, NHL, NBA, UFC, Rogers and CCTV.  DivX customers include LG, Samsung, Toshiba and Hisense.

NeuLion said the management teams and employees of both companies will be combined. NeuLion chief executive officer Nancy Li will become executive vice chairman of the NeuLion board of directors. Kanaan Jemili, DivX’s CEO, will be her successor as NeuLion CEO.  

James Hale, DivX’s chairman and managing partner at Parallax Capital Partners, and John Coelho, a member of DivX’s board of directors and partner at StepStone Group, will both be added to an expanded NeuLion board of directors. 

The purchase price breaks down into $37.5 million in shares of NeuLion common stock and a $25 million two-year convertible note.  At closing, NeuLion will issue 35.8 million shares of common stock at approximately $1.045 per share.

The transaction is expected to close in the first quarter of this year.

Separately, DivX made a set of announcements at CES.

• The company launched DivX Live, a member of its OmniView family of products. The company said Live supports secure live streaming up to 4K using HEVC and MPEG-DASH.
• DivX said that RealTek Semiconductor’s RTD2984DX-GR Ultra HD SoC has achieved DivX HEVC Certification.
• Siligence licensed DivX HEVC technology for its set-top boxes, based on Broadcom and STMicro advanced silicon solutions. Siligence said it has customers preparing for
• GoLive Movie will use DivX OmniView to deliver on-demand premium movie content to smart TVs. The new GoLive Movie service will first be available on television sets from TCL.

DivX provides secure players and key management for cross-platform delivery for mobile and PC, along with a robust set of SDKs to ensure reliable, secure and high-quality live streaming on consumer electronics devices. The DivX secure players and license service deliver live video content using industry-standard Common Encryption, utilizing DivX Certified® secure key management to provide an extra layer of security.