D&M Holdings, owners of the Denon and Marantz brand names, have purchased the ReplayTV and Rio brands in a bankruptcy auction for Sonicblue Corp.
D&M had previously bid for both of the Sonicblue brands, but a deal fell through. Wednesday, the Japanese consumer electronics manufacturer snapped up the two brands for about $36.2 million; for the last 12-month period, ReplayTV yielded revenues of approximately $22 million and Rio produced revenues of approximately $62 million.
The Reuters new service reported that the deal will involve certain "contractual agreements", believed to be the lifetime subscriptions to the ReplayTV service. In a statement, D&M said that the company "intends to keep all ReplayTV customers and will design, manufacture and distribute a line of ReplayTV and Rio products."
D&M Holdings also announced plans to establish a new digital development group under D&M Holdings U.S., Inc. The business assets purchased from Sonicblue will be merged into this new digital development group. The new subsidiary, Digital Networks North America, Inc. (DNNA), will drive the strategy and develop the core technologies for D&M, the company said.
"With this sale, we finish a difficult chapter in our history and begin a new phase that we believe will be more conducive to the success of these businesses," said Gregory Ballard, chief executive officer of Sonicblue, in a statement. "We have done all that we can for our creditors, and our product lines will continue to compete successfully in the marketplace. Many if not most of our employees will continue their work, and our customers will continue to enjoy Rio and ReplayTV in their homes."
Reuters reported that Sonicblue is selling its remaining intellectual property as well as its shares in United Microelectronics Inc., a Taiwan foundry. The D&M transaction is expected to close in approximately 10 days.