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More about Macrovision acquiring InstallShield

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Stefan Krueger

Stefan Krueger


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Posted 22 June 2004 - 17:20

The following information about Macrovision’s acquisition of InstallShield has been collected from the companies' web sites, press releases, webinars and the like.

About Macrovision
  • Macrovision Corporation (Nasdaq: MVSN) is a leading provider of digital rights management (“DRM”) technologies for the video, music and software industries. These technologies encompass copy protection, electronic licensing and rights management, including product authentication and activation. The company is regarded as a leading supplier in each of these markets.
  • Macrovision was founded in 1983 and went public in 1997.
  • Macrovision has grown through internal (organic) developments, as well as external acquisitions. They have acquired technologies, companies, intellectual property and assets, such as C-Dilla (SafeDisk), Globetrotter Software (FLEXlm), Midbar Tech (Cactus Data Shield)
Benefits of the acquisition
  • The acquisition will increase the available market. Both companies address the same target customers.
  • The products of the two companies do not overlap but complement each other. A combination of the sales force and contacts is expected to increase sales for both, Macrovision and InstallShield products.
  • Combined sales and marketing resources will address common users and buyers, enabling cross-selling opportunities
Product plans
  • Macrovision will continue to develop the existing InstallShield product lines.
  • In the short term Macrovision plans to offer bundles of their FLEXnet licensing and product activation tools with InstallShield products.
  • In the long term a certain degree of integration or interaction of the products is planned to simplify inclusion of licensing tools with the setup.
  • Macrovision’s FELXnet Publisher Operations Module is an excellent complement to InstallShield’s Update Service for license updates.
  • InstallShield AdminStudio has good synergies with FLEXnet Manager for enterprise license deployment and compliance management.
The future of InstallShield personnell and offices
  • InstallShield will be fully integrated in Macrovision, it will not become a separate division.
  • InstallShield’s offices in Schaumburg (USA) and Bristol (UK) will be maintained
  • No major layoffs to be expected
  • InstallShield founders Viresh Bhatia and Rick Harold will stay with the company. Viresh will become senior vice president, Rick and several other InstallShield executives will become vice presidents at Macrovision.
  • All Installshield employees will receive Macrovision stock options.
Some numbers
  • InstallShield Software Corp. is a privately held company and was founded in 1987
  • Macrovision is paying $76 million in cash for the acquisition.
  • An additional payment of $20 million will be made if InstallShield meets a goal of 20% growth within the next 12 months.
  • InstallShield has about 200 employees, Macrovision has 370
  • InstallShield has a installed customer base of over 69,000 software developer organizations. The Top 100 software vendors all use InstallShield.
  • In 2003 InstallShield had a revenue of $35 million.
  • InstallShield revenue in 2003 was 75% licenses and 25% services
  • InstallShield revenue by region: 60% North Amaerica, 30% EMEA (Europe, Middle East, Africa), 5% Japan and 5% rest of the world.
  • Macrovision’s revenue in 2003 was $128 million
  • Macrovision’s business today is about 2/3 in entertainment and 1/3 in software industry
Comparison with Altiris’ acquisition of Wise in December 2003
  • Altiris paid $43 million in cash and stock for Wise, Macrovision is paying $76-$96 million in cash for InstallShield
  • In the first three quarters of 2003 Wise had a revenue of $14,8 million. For the full year of 2003 InstallShield’s revenue was $35 million.
  • Wise is a separate business unit inside Altiris, InstallShield will be fully integrated in Macrovision
  • At the time of the acquisition, one of the two founders and the CFO of Wise left the company. The two founders of InstallShield and other executives will be carried over to Macrovision.