Dolby buys digital cinema server vendor for up to $112.5M

|About: Dolby Laboratories, Inc. (DLB)|By:, SA News Editor

Dolby (DLB -0.9%) is acquiring Doremi Labs, a maker of video playback servers for digital cinemas, for $92.5M in cash + $20M in performance pay-outs.

Doremi's hardware, which include 4K playback servers, complements Dolby's Atmos audio playback systems for theaters. The company also offers theater management software and post-production/mastering systems.

Dolby's product sales fell 29% Y/Y in the December quarter to $18.1M (8% of total revenue).