San Francisco-based technology company Dolby Laboratories has been given EU clearance to proceed with its acquisition of cinema technology business Doremi. The European Commission, in its decision, said that while there was some overlap between the two businesses they did not constitute a distortion of the market.
“The proposed transaction would not lead to any anti-competitive effects because of the presence of alternative suppliers, the fast-moving nature of the market and the ease of switching for customers,” the Commission said in a statement.
Dolby Labs offered $92.5 million in cash, plus $20 million in contingent consideration for what may be earned over a 4-year period.
Doremi specialises in supplying play-out equipment for digital cinema presentations. Doremi was founded in 1985 and has built a steady reputation in terms of digital cinema file-servers. At the time of the proposed acquisition Doremi claimed its kit was installed in some 58,000 auditoriums around the world. It is based in Burbank, Los Angeles and in France.