Philips and Fidelio lead acquisition of Intertrust

Fidelio Acquisition Company and Philips Electronics a have executed a definitive agreement to acquire InterTrust Technologies Corporation for $453 million.

Fidelio Acquisition Company, Royal Philips Electronics and certain other investors have executed a definitive agreement to acquire InterTrust Technologies Corporation, a holder of intellectual property in digital rights management (DRM).

As a result of the transaction, Fidelio, a company formed by Sony Corporation of America, will acquire all of the outstanding common stock of InterTrust for approximately $453 million on a fully diluted basis or $4.25 per share.

According to a statement, the most important objective of the transaction is to enable secure distribution of digital content by providing wider access to InterTrust’s key DRM intellectual property on a fair and reasonable basis.

InterTrust is said to hold 26 US patents and has approximately 85 patent applications pending worldwide. InterTrust’s patent portfolio covers software and hardware technologies that can be implemented in a broad range of products that use DRM, including digital media platforms, web services and enterprise infrastructure.

InterTrust’s board of directors has unanimously approved the acquisition, which is subject to customary closing conditions, including regulatory approvals.

‘Throughout Sony on a global scale, we operate with a keen awareness that the future growth of the consumer electronics, computer and entertainment industries will be heavily influenced by the ability to transmit digital content in a secure environment,’ said Nobuyuki Idei, Chairman and Chief Executive Officer of Sony Corporation. ‘This acquisition will significantly accelerate the ability to ensure secure delivery of digital content. This in turn will enable the development of many exciting new services for consumers and businesses.’