Sonic Solutions announced that it has entered into
a definitive agreement to acquire InterActual Technologies, the leading provider
of solutions for integrating DVD content with the Internet and additional
on-disc bonus features for $ 8.8 million in cash. With the acquisition of
InterActual, Sonic will further strengthen its leadership position with the
Hollywood-based DVD production community and broaden its professional DVD
authoring product line with advanced web-linking technologies. In addition,
InterActual's web-enabled DVD playback capabilities will be integrated into
Sonic's consumer DVD software applications as well as its AuthorScript™ DVD
creation engine, enabling Sonic's bundle OEMs and technology licensing partners
to deliver the best possible connected-DVD experience to their
customers.
As a result of the acquisition, Sonic will acquire
InterActual's web-enabling technologies including its portfolio of 17 patents
and patent applications, the InterActual Player, and all engineering and service
operations. Key InterActual executives, including Todd Collart, InterActual's
president, and almost all members of staff will join Sonic's Professional
Products or Advanced Technologies business units. Sonic plans to continue to
market the InterActual brand and spotlight logo as part of the Sonic product
family. Sonic also plans to continue InterActual's cross-platform licensing
strategy to enable third-party DVD players and authoring solutions to play and
access InterActual bonus content.
InterActual is recognized by Hollywood's top movie
studios as the de facto standard for seamlessly connecting DVD-Video content
with both web- and high-end ROM-based bonus features such as downloadable
commentaries, scene medleys, and image galleries accessible with a DVD-enabled
PC. The InterActual Player can be found on hundreds of millions of DVDs,
including such blockbuster titles as New Line Cinema's "Lord of the Rings '“ The
Two Towers," Disney's "Pirates of the Caribbean," Warner Bros.' "The Matrix
Reloaded" and "Harry Potter and The Chamber of Secrets," Universal's
"Seabiscuit," and Columbia TriStar's "Spider-Man." In 2003 over 70% of the top
25 selling DVDs were InterActual-enabled.
"As the leading provider of DVD creation solutions
to Hollywood as well as the leading supplier of DVD and CD creation software on
the PC, Sonic is the perfect partner with whom to expand InterActual's
technology and enhance our service offerings to the content community," said
Todd Collart, president of InterActual Technologies. "Joining forces with Sonic
greatly strengthens our ability to deliver cutting-edge Internet-connected
technology across a broad-range of platforms, especially for our studio
partners."
"The PC DVD-ROM market segment represents over 44%
of U.S.-based DVD viewing households, and this segment is growing dramatically,"
said Bob Doris, president and CEO of Sonic Solutions. "InterActual's
industry-leading technology and service operations targeted at highly connected
consumers allow us to enhance the world's best DVD creation technology to our
professional authoring customers while enabling our PC and license partners to
offer internet-connected DVD playback solutions that deliver a deeply enriched
DVD experience for their customers."
The acquisition is subject to customary closing
conditions, including approval by InterActual shareholders. Sonic currently
expects to close the acquisition in mid- to late February 2004. Sonic management
plans to provide more information regarding the financial and operational impact
of the acquisition during the Company's 3rd Quarter Fiscal 2004 Financial
Results Conference call scheduled for 1:30 PM PST (4:30 PM EST) on Tuesday,
February 3, 2004.
About
InterActual
InterActual Technologies, Inc., (http://www.interactual.com) is the
leading provider of software and services that enhance DVD movie viewing on
computers and next-generation consumer electronics devices. InterActual offers
an exclusive line of platform-based solutions for integrating DVD content with
the Internet and additional on-disc bonus features. The InterActual platform
enables DVD producers to augment the original feature program with compelling
and relevant features and activities. InterActual has become the de facto
standard for DVD-ROM content creation and integration, shipping on over 1000
major DVD titles representing hundreds of millions of discs. Incorporated in
1995, InterActual is a privately-held company headquartered in San Jose,
California, with a satellite team in Los Angeles, California.
About Sonic Solutions
Based in Marin County, California, Sonic Solutions
(http://www.sonic.com)
is the world's leading supplier of DVD creation software for professional,
industrial and consumer applications. The majority of major film releases on DVD
have been produced on Sonic's professional DVD authoring systems in studios
around the world. Sonic's MyDVD® and DVDit!® are the most widely-used DVD
creation applications by consumers and video enthusiasts and are the solutions
of choice among the key PC and after-market drive suppliers. Sonic's RecordNow!™
is a leading solution for audio and data mastering. Sonic's AuthorScript, the
DVD and CD formatting and burning engine that underlies Sonic's applications, is
the most widely deployed DVD software engine and has been licensed by Adobe,
Microsoft, Sony, and many others.
Source: Sonic
