Roxio is selling its software arm to Sonic Solutions in a cash/stock deal worth $80 million, and will change its name - and its focus - to Napster.

Sonic Solutions is a known manufacturer of DVD-creation software. It said the acquisition means it gets a: "Well-recognised set of consumer software brands, access to long-standing distribution channels and strong marketing expertise."

Roxio, the owner of the Napster music Web site, will receive $70 million in cash and Sonic shares valued at $10 million.

"Napster will emerge as a well-positioned pure-play in the fast-growing digital music sector with a substantially enhanced balance sheet that will support our growth plans," Roxio chairman and CEO Chris Gorog said.

Sonic gets Toast

Under the terms of the deal, Sonic will purchase essentially the entire Roxio software operation including Roxio's CD and DVD recording, authouring, photo and video editing application products including: Easy Media Creator, PhotoSuite, VideoWave, Easy DVD Copy and Toast.

Sonic expects to retain "most" of the current employees of Roxio. Sonic intends to continue the Roxio brands, and current distribution and OEM relationships.

The acquisition must be agreed by both companies' shareholders, and is expected to complete in Q4.