Dolby Will Acquire Algorithm Firm Coding Technologies

Dolby Laboratories will acquire Coding Technologies, a Swedish company that provides audio compression technologies. Price tag: a quarter of a billion dollars.
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Dolby Laboratories will acquire Coding Technologies, a Swedish company that provides audio compression technologies. Price tag: a quarter of a billion dollars.

Coding Technologies is familiar to radio broadcast engineers. XM uses its aacPlus algorithm; in 2003 Ibiquity Digital adopted its SBR technology for HD Radio; in 2006 Coding Technologies and Orban brought MPEG-4 aacPlus audio to the Windows Media Player. The company also has presented research into 5.1 surround for HD Radio applications at NAB conventions.

Coding Technologies also makes audio compression for the mobile and Internet markets. Dolby said the deal expands its technology portfolio and expertise for “emerging low-bandwidth media applications.”

President/CEO Bill Jasper said the deal means Dolby “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.”

Dolby, based in San Francisco, has built its business around audio entertainment; it is active in cinema, broadcast, home audio systems, cars and other consumer electronics niches. In fiscal 2007 it had revenue of $482 million.

The acquisition has not yet closed. “Certain minority equity interests of Coding Technologies will remain outstanding and will be subject to mandatory buyout procedures under Swedish law,” Dolby stated.

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