Internet video technology provider NeuLion, a partner to a host of major professional sports leagues in the US, has acquired next-generation digital video solutions specialist DivX.
The agreement, which is subject to customary closing conditions, is worth $62.5m (€50.3m) and is expected to close in the first quarter of 2015.
NeuLion said that the agreement would place the new combined company at the “forefront of the global shift to 4k video and Over-The-Top services” within the online video market.
When the deal closes, NeuLion chief executive Nancy Li will become executive vice-chairman of the NeuLion board and head the technology strategy for the new company. Kanaan Jemili, chief executive of DivX, will replace Li in her existing role at NeuLion.
The management teams and employees of both NeuLion and DivX will also be combined.
NeuLion has established partnerships with a number of major sports leagues in the US, including basketball’s NBA, ice hockey’s NHL and American football’s NFL.