Cinema sound group Dolby Laboratories Inc. (NYSE: DLB) is buying Doremi Labs for about $93 million.
Doremi, headquartered in Burbank, Calif., provides digital cinema and video playback services, including servers, post-production products and theater management systems.
San Francisco-based Dolby also provides technology to the cinema industry, and is known for its audio systems. The company provides audio, video and voice technology for mobile devices, cinemas, homes and businesses.
When the businesses are combined, Dolby expects to increase the pace of product innovation.
The purchase price works out to $92.5 million in cash, plus an additional $20 million that may be paid over a four-year period.
The transaction is subject to regulatory review, but the companies expect the deal to close by the end of the year.