DivX Acquired By Private Equity Group

San Diego-based DivX, the developer of digital video encoding and decoding technology has been acquired by private equity firms Parallax Capital Partners and StepStone Group, the companies said yesterday, in a deal worth $75M in cash plus earnout. DivX had been part of Rovi, which had said it would sell Rovi and related company MainConcept, as it swizzled its strategy earlier this year. DivX had been acquired by Rovi back in 2010 when it was known as Sonic Solutions, in a deal that was at the time worth $325M. DivX said that it was assisted int he deal by San Diego's Karmel Capital. DivX offers up video encoding and decoding softare which are used for playback of video across both software and hardware.