Acquisition to strengthen Dolby's licensing
businesses and create opportunity for future growth
SAN
FRANCISCO, June 6, 2024 /PRNewswire/ -- Dolby
Laboratories, Inc. (NYSE: DLB), a leader in immersive entertainment
experiences, announced today that it has entered into a definitive
agreement to acquire GE Licensing, which owns, maintains, and
licenses an extensive portfolio of IP primarily targeting the
consumer digital media and electronics sectors.
As one of the most respected companies in the field of patent
licensing and management, GE Licensing is a leading innovator with
world-class patents and licensing expertise, especially with
respect to pioneering video codec technology. The transaction will
include a portfolio of over 5,000 patents, including foundational
patents in standard essential video compression. GE Aerospace will
retain its portfolio of IP related to its core aerospace and
defense technologies, as well as the trademark portfolio for the GE
brand.
"GE Licensing is home to a number of essential innovations that
power the modern world" said Andy
Sherman, Dolby Executive Vice President, Patent Licensing
and General Counsel. "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."
This acquisition is an extension of Dolby's existing
licensing businesses. GE Licensing's portfolio of video codec
technology, such as HEVC and VVC, complement, strengthen, and
expand the scale of Dolby's intellectual property
portfolio. Dolby is committed to continuing to facilitate the
adoption of next-generation standardized technologies – enabling
industry efficiency, continuity, and growth.
"Dolby is a trusted leader and innovator with a long history in
licensing technologies and patents through collaborative
structures," said Robert Giglietti,
GE Aerospace's CEO of Corporate Holdings and Treasurer. "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."
Financial Considerations
Dolby Laboratories has agreed to acquire GE Licensing, an
intellectual property licensing business primarily targeting the
consumer digital media and electronics sectors, in a $429 million all cash transaction. This deal is
expected to close by the end of fiscal year 2024, subject to
regulatory approval and other customary closing conditions, and is
not expected to have a material impact on Dolby's fiscal year 2024
results. This transaction includes attractive complementary
assets that strengthen and expand Dolby's patent portfolios, and
represents a compelling financial profile of durable, high-margin
revenue. Dolby expects the deal to be accretive on a non GAAP basis
to operating margins and EPS in fiscal 2025.
This transaction is not expected to affect Dolby's practice of
returning capital to stockholders through its quarterly dividend
and through stock repurchases to offset dilution from
stock-based compensation.
About Dolby Laboratories
Dolby Laboratories (NYSE: DLB) is based in San Francisco, California with offices around
the globe. From movies and TV shows, to apps, music, sports, and
gaming, Dolby transforms the science of sight and sound into
spectacular experiences for billions of people worldwide. Dolby
partners with artists, storytellers, developers, and businesses to
revolutionize entertainment and communications with Dolby Atmos,
Dolby Vision, Dolby Cinema, and Dolby.io. Dolby, Dolby Atmos, Dolby
Vision, Dolby Cinema, Dolby.io, and the double-D symbol are among
the registered and unregistered trademarks of Dolby Laboratories in
the United States and/or other
countries.
About GE Aerospace
GE Aerospace (NYSE: GE) is a global aerospace propulsion,
services, and systems leader with an installed base of
approximately 44,000 commercial and 26,000 military aircraft
engines. With a global team of 52,000 employees building on more
than a century of innovation and learning, GE Aerospace is
committed to inventing the future of flight, lifting people up, and
bringing them home safely. Learn more about how GE Aerospace and
its partners are defining flight for today, tomorrow and the future
at www.geaerospace.com.
Forward-Looking Statements
This press release contains forward-looking information related
to Dolby and Dolby's proposed acquisition of the intellectual
property licensing business of General Electric (the "Licensing
Business"), that involves substantial risks, uncertainties, and
assumptions that could cause actual results to differ materially
from those expressed or implied by such statements. When used in
this press release, words such as "enables", "intends", "will",
"expects", and similar expressions and any other statements that
are not historical facts are intended to identify forward-looking
statements. Forward-looking statements contained herein may
include, among other things, statements about the potential
benefits and financial implications of the proposed transaction,
the potential impact of the proposed transaction on Dolby's
practices regarding quarterly dividends and share repurchases,
Dolby's plans, objectives, expectations, and intentions regarding
the Licensing Business and the assets that comprise the Licensing
Business, and the anticipated timing of closing of the proposed
transaction. Risks and uncertainties include, among other things,
risks related to the ability of Dolby to consummate the proposed
transaction on a timely basis or at all; Dolby's ability to secure
regulatory approvals on the terms expected, in a timely manner or
at all; Dolby's ability to successfully integrate the Licensing
Business's operations; Dolby's ability to implement its plans,
forecasts, and other expectations with respect to the Licensing
Business and the assets that comprise the Licensing Business after
the completion of the transaction and realize expected synergies;
the ability to realize the anticipated benefits of the proposed
transaction, including the possibility that the expected benefits
from the proposed transaction will not be realized or will not be
realized within the expected time period; disruption from the
transaction making it more difficult to maintain business and
operational relationships; risks related to diverting management's
attention from Dolby's ongoing business operations; potential
negative effects of the announcement or the consummation of the
proposed transaction on the market price of Dolby's Class A common
stock or on Dolby's operating results; significant transaction
costs; unknown liabilities; the risk of litigation or regulatory
actions related to the proposed transaction; and the effect of the
announcement or pendency of the transaction on Dolby's or the
Licensing Business's relationships, operating results, and business
generally.
Further information on these and other risks and uncertainties
relating to Dolby can be found in its reports and other filings
Dolby makes with the Securities and Exchange Commission (the "SEC")
from time to time and available at www.sec.gov. Copies of documents
filed with the SEC by Dolby (when they become available) may be
obtained free of charge on Dolby's website at
https://investor.dolby.com. The forward-looking statements included
herein are made only as of the date hereof. Dolby disclaims any
obligation to update these forward-looking statements, except as
required by law.
Press Contacts
Dolby Laboratories
Peter
Drummond
201.213.2221
dolby@berlinrosen.com
GE Aerospace Media Contact
Nicole Sizemore
203.945.9783
nicole.sizemore@ge.com
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SOURCE Dolby Laboratories, Inc.