Mumbai: Sony Corporation of America (SCA) announced that it has signed a merger agreement with Gracenote. Sony will pay approximately $260 million plus other contingent consideration.
SCA senior vice president, software Tim Schaaff said, "Sony sees tremendous growth potential in developing Gracenote as a separately run business unit, and by broadly embracing Gracenote’s platforms, Sony expects to significantly enhance and accelerate its own digital content, service, and device initiatives."
Gracenote CEO Craig Palmer said, "Having a closer connection with the content and digital services community will accelerate adoption of Gracenote technologies, and the relationship will also give us the resources necessary to rapidly expand development of next generation products for the industry."
Gracenote’s existing business will continue to operate separately. As a wholly owned Sony subsidiary, Gracenote will continue to develop new technologies in existing as well as new areas of operation. The senior management team will remain with the company.
Sony and Gracenote anticipate that the transaction will close in late May, subject to certain regulatory and other approvals.z