Dolby Laboratories today announced that it has signed a definitive agreement to acquire Coding Technologies AB. Coding Technologies is a privately held provider of audio compression technologies for the mobile, digital broadcast, and Internet markets. The purchase price is approximately $250 million net of cash, according to Dolby.

This acquisition will broaden Dolby’s technology portfolio for emerging low-bandwidth media applications. The acquisition is expected to close very soon and the closing mechanics are currently in process.

"Dolby is committed to and focused on delivering innovative entertainment technology solutions to our customers and licensees. By adding Coding Technologies’ expertise and high-efficiency audio compression to our portfolio of technologies and services, we will be better positioned to support our customers as they continue to move into more bandwidth-constrained delivery methods such as mobile networks and the Internet," said Bill Jasper, President and CEO, Dolby Laboratories.