DemoGraFX buy gets Dolby amped

Team to focus on better image-processing technology

LAS VEGAS — Dolby Labs will buy the assets and research talent of DemoGraFX Inc., which develops ways to better display high-end digital video.

Under the deal, Dolby will acquire DemoGraFX’s patents, product line and tech development systems and move the Marina del Rey, Calif., company’s technology team to Dolby’s Burbank facility. Terms were not disclosed, but the deal is expected to close by month’s end.

The team will focus on developing better image-processing technology for common digital entertainment formats. DemoGraFX technologies include techniques for reducing video “noise” and expertise in the high-end Advanced Video Coding format being hammered out for a wide range of uses in digital cinema, digital TV, Internet streaming and even wireless video.

The DemoGraFX team will be led by director of technology development Kevin Stec and principal engineer Walter Gish. Tom McMahon becomes a senior architect in Dolby’s research department.

Dolby prexy Bill Jasper said the purchase will help his company create solutions for handling digital audio and video in entertainment sectors.

“The DemoGraFX asset purchase is a perfect fit as we expand our technology product and service business with very high-quality image-processing solutions that target important markets in entertainment,” Jasper said.

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