Alphatheta's acquisition of Serato blocked by Commerce Commission
The merger was rejected by the Commission a year after it was first proposed.
The Commerce Commission, New Zealand’s competition regulation agency, has blocked AlphaTheta from acquiring NZ-based DJ and production software company Serato.
AlphaTheta, Pioneer DJ’s parent company, first proposed the merger in July 2023. The acquisition would have merged both companies in a $50+ million buyout. The acquisition would also have taken Serato under the AlphaTheta umbrella with the likes of existing companies Pioneer DJ and Rekordbox DJ.
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According to the NZCC’s chairman Dr John Small, the acquisition “would not have the effect of substantially lessening competition”.
He added: “While other DJ software providers would remain in the market, we did not consider these rivals, or the possibility of a new DJ software provider entering the market in the near term, would be sufficient to replace the level of competition that would be lost with the merger.”
Earlier this year, UK Gov led an inquiry into the merger, finding that, if the deal were to go forward, it would “create a supplier almost double the size of its nearest rival, consolidating the market and potentially impacting the price, quality, and innovation of DJ software.”
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Since the acquisition was blocked, AlphaTheta and Serato released a joint statement explaining: “We are disappointed by the ruling of the New Zealand Commerce Commission against the acquisition.”
“We believe that the proposed agreement would have accelerated our combined ability to deliver incredible products to DJs and Producers around the world by capitalising on our complementary expertise while creating significant benefits for the local music technology industry in New Zealand,” they added.
Read AlphaTheta and Serato's full statement here.
Gemma Ross is Mixmag's Assistant Editor, follow her on Twitter.
This article originally featured on Mixmag Global.
