Dolby buys web delivery firm

Dolby Laboratories has signed a definitive agreement to acquire Swedish firm Coding Technologies for $250m in cash.

Privately held Coding Technologies develops audio compression technologies for the mobile, digital broadcast and internet markets.

Dolby said that the acquisition will broaden its technology portfolio and expertise for emerging low-bandwidth media applications, such as delivery over the internet.

The acquisition is expected to close soon, and certain minority equity interests of Coding Technologies will be subject to mandatory buyout procedures under Swedish law.

"Dolby is committed to, and focused on, delivering innovative entertainment technology solutions to our customers and licensees," said Bill Jasper, president and chief executive at Dolby Laboratories.

"By adding Coding Technologies' expertise and high-efficiency audio compression we will be better positioned to support our customers as they move into more bandwidth-constrained delivery methods such as mobile networks and the internet.

"In addition to extending our portfolio of solutions, we are adding the talent and know-how of Coding Technologies' employees. We share a passion for technology and entertainment and a focus on innovation."