Anti-piracy booty swells VC coffers

Macrovision Corporation of the US this summer bought out the other shareholders in C-Dilla, the copy protection and rights management technology specialist. The deal, which valued UK-based C-Dilla at $22 million (euro 21 million), provided a profitable exit for its venture backers Quester VCT, Abingworth and Alta Berkeley.

This Quester-led syndicate invested GBP1.5 million ($2.4 million) in C-Dilla in October 1996. Fourteen months later, Nasdaq-quoted Macrovision invested for a 19.9 per cent stake in C-Dilla and cemented a distribution agreement for C-Dilla’s SafeDisc technology.

Macrovision, which serves the home video, consumer multimedia software, pay-per-view, cable, satellite and video security markets, is the world leader in copy protection technology for videos and DVDs. C-Dilla has developed encryption software and technology targeted at electronic data publishers and software vendors. C-Dilla managing director Toby Gawin explains: “In order to maximise the value and market reach of our technology, we need a company with global ambitions to help us expand our world-leading technical position”.

Quester director Simon Acland says the investment in C-Dilla meets the venture backers’ return expectations, adding: “Macrovision will help this [C-Dilla’s] technology to gain the market penetration it deserves and has made an important strategic enhancement to its range of products and technology.”