, a maker of technology that prevents would-be pirates from copying software, video and other media, said Tuesday that it will buy privately held
in an all-stock deal.
The acquisition values Globetrotter, a San Jose, Calif.-based developer of business-to-business technology for electronic licensing of software, at around $860 million.
Sunnyvale, Calif.-based Macrovision will acquire all of Globetrotter for 11.2 million shares, or roughly 28% of its outstanding common stock, and will assume all unvested Globetrotter stock options.
In early trading Tuesday, Macrovision rose 3 1/16, or 4%, to 79 5/16. The company's stock has seen stellar growth in the past year, and is up about tenfold from last year, when it traded around 7 3/4. (Macrovision closed up 2, or 3%, at 78 7/8).
Macrovision develops technology that helps companies prevent consumers from copying and counterfeiting software, music and video, and has also supplied technology for pay-per-view television and video-on-demand.
Through the acquisition of Globetrotter, Macrovision will expand into the market for online software licensing, an area that is expected to grow quickly as many companies move away from traditional software in a box to Internet distribution and support.
"The combination of Macrovision and Globetrotter can serve the entire software industry, affecting applications as diverse as consumer entertainment titles in the home and engineering applications for global enterprises," said Matt Christiano, founder and chief executive officer of Globetrotter, in a statement.
Both companies are profitable. For 1999, Macrovision posted earnings of $11 million on revenues of $37.4 million. Globetrotter had unaudited 1999 revenues of $15 million, and was described as profitable in a release.
To illustrate their growth potential, the companies cite industry reports that expect over 50% of software companies' revenue will come from electronic licensing by 2003, and virtually all software licensing to be conducted electronically by 2008.