Dolby Laboratories To Acquire GE Licensing In $429M Cash Deal: Strengthens Patent Portfolio
Portfolio Pulse from Shivani Kumaresan
Dolby Laboratories (NYSE:DLB) announced a $429 million all-cash acquisition of GE Licensing from GE Aerospace (NYSE:GE). The deal, expected to close by the end of fiscal year 2024, will add over 5,000 patents to Dolby's portfolio, particularly in video compression technology. The acquisition is anticipated to be accretive to Dolby's operating margins and EPS on a non-GAAP basis in fiscal 2025. GE Aerospace will retain its core aerospace and defense IP portfolio.
June 06, 2024 | 4:06 pm
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Dolby Laboratories is acquiring GE Licensing for $429 million in cash, adding over 5,000 patents to its portfolio. The acquisition is expected to be accretive to operating margins and EPS on a non-GAAP basis in fiscal 2025.
The acquisition significantly strengthens Dolby's patent portfolio, particularly in video compression technology, which is crucial for its business. The deal is expected to be accretive to operating margins and EPS, indicating a positive financial impact.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
GE Aerospace is selling GE Licensing to Dolby Laboratories for $429 million in cash. The sale allows GE Aerospace to focus on its core aerospace and defense technologies.
The sale of GE Licensing allows GE Aerospace to concentrate on its core business areas. However, the transaction is not expected to have a significant immediate financial impact on GE.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70