1:30pm PT by Carolyn Giardina
Dolby Completes Acquisition of Digital Cinema Server Manufacturer Doremi
Dolby Laboratories has completed its acquisition of Doremi Labs in a deal valued at $92.5 million in cash plus an additional $20 million in contingent consideration that may be earned over a four-year period. The companies announced the planned acquisition in February.
Doremi manufacturers digital cinema playback servers used in digital cinema theaters. Dolby estimated that combined, the Dolby and Doremi installed base is between 65,000 and 75,000 worldwide.
Dolby plans to transition all products and materials with the Doremi brand to the Dolby brand in phases. It also said it would honor contractual commitments to both Dolby and Doremi customers.
As for management, Dolby confirmed that Doremi’s founder and president, Camille Rizko, would continue to directly oversee the engineering and operations functions of the Doremi business, and Mike Archer, vp digital cinema sales at Doremi, would serve as head of worldwide cinema sales within Dolby’s global sales organization.
The company declined to comment on its development strategy. Dolby president and CEO Kevin Yeaman said in a statement: "Delivering deeply integrated audio/video playback systems will allow us to accelerate innovation and deliver amazing experiences for exhibitors and audiences."