Technology company Dolby Laboratories has announced a definitive agreement to acquire GE Licensing from GE Aerospace in an all-cash deal valued at $429m.
GE Licencing, an intellectual property licencing company, specialises in serving the consumer electronics and digital media markets.
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The deal will strengthen Dolby’s collection of intellectual property by adding almost 5,000 patents, which notably include key patents in video compression technologies.
However, the deal excludes GE Aerospace’s core intellectual property related to aerospace and defence technologies and the trademark portfolio for the GE brand.
Dolby said the deal will also bolster its existing licensing operations.
The inclusion of GE Licencing’s video codec technology patents such as HEVC and VVC will complement and expand Dolby’s existing intellectual property portfolio.
Dolby executive vice president of patent licensing and general counsel Andy Sherman said: “GE Licensing is home to a number of essential innovations that power the modern world. An important part of Dolby’s strategy is providing value to our customers, partners, and the industry through open standards and collaborative pool licensing. This acquisition gives us the opportunity to continue to promote and support innovation within our ecosystems.”
GE Aerospace CEO of corporate holdings and treasurer Robert Giglietti said: “Dolby is a trusted leader and innovator with a long history in licensing technologies and patents through collaborative structures.
“As GE Aerospace continues to sharpen its focus as a standalone company serving aerospace and defense customers, Dolby is the right partner for ensuring these innovative digital media technologies continue to serve businesses and consumers around the world.”
The transaction is predicted for completion by the end of fiscal year 2024, pending regulatory approval and other customary closing conditions.
Dolby has stated that this acquisition is not expected to materially impact its fiscal year 2024 results.
