UPDATE 1-Sonic to buy DivX for about $323 million

* Deal values DivX at $9.83 per share

* Deal at premium of about 41 pct over DivX’s Tuesday close

* Sonic sees deal to add to adj earnings in 2012

* DivX shares rise 24 pct before the bell

June 2 (BestGrowthStock) – Sonic Solutions (SNIC.O: ) agreed to
acquire video compression software maker DivX Inc (DIVX.O: ) for
about $323 million in cash and stock to boost its
Internet-based video delivery products.

The deal values DivX’s stock at about $9.83 per share,
which represents a premium of about 41 percent over its Tuesday
closing price of $6.95.

Sonic expects the acquisition to potentially double its
adjusted earnings in 2012.

Sonic said it will pay $3.75 per share in cash and 0.514
shares for each share of DivX.

In case of termination, DivX will have to pay a fee of
$8.35 million, the companies said.

Shares of DivX rose about 24 percent before the bell.
Shares of Sonic closed at $11.83 Tuesday on Nasdaq.

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(Reporting by Manasi Phadke in Bangalore; Editing by Anil
D’Silva)

UPDATE 1-Sonic to buy DivX for about $323 million