Dolby Purchases Coding Technologies, $250 Million Deal

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Dolby Laboratories is now purchasing Coding Technologies AB for $250 million.

The deal broadens the technology footprint for Dolby, already a leader in audio and surround sound cinema, broadcast, home audio systems.  Coding Technologies, a Stockholm-based company, specializes in audio compression, and is best known for its aacPlus codec.  Additionally, Coding Technologies has also helped to shape open standards like 3GPP, 3GPP2, MPEG, DVB, Digital Radio Mondiale, and DAB+.

The buyout gives Dolby better expertise in lower-bandwidth, emerging platforms.  “By adding Coding Technologies’ expertise and high-efficiency audio compression to our portfolio of technologies and services, we will be better positioned to support our customers as they continue to move into more bandwidth-constrained delivery methods such as mobile networks and the internet,” said Bill Jasper, president and chief executive at Dolby Laboratories.  The definitive agreement was first disclosed late last week.

Story by news analyst Alexandra Osorio.