New Zealand’s competition regulation agency, the Commerce Commission, has prevented AlphaTheta from acquiring Serato, a DJ and production software company based in New Zealand. AlphaTheta, parent company of Pioneer DJ, first proposed the merger in July 2023, which would have created a $50+ million deal, melding both organizations together. The acquisition would have also presented Serato with an AlphaTheta umbrella alongside existing Pioneer DJ and Rekordbox DJ units.
According to Dr. John Small, the NZCC’s chairman, the acquisition “would not have the effect of substantially lessening competition.” Though, he adds that other DJ software providers remaining in the market wouldn’t be sufficient to replace the competition level that would be lost with the merger or a new DJ software provider’s potential entrance into the market in the near term.
Earlier this year, the UK Government led an inquiry into the merger, determining that if the deal went forward, it would consolidate the market, potentially hurting the price, quality, and innovation of DJ software, creating a supplier almost double the size of its nearest competitor.
AlphaTheta and Serato subsequently released a joint statement expressing their disappointment regarding the Commerce Commission’s block of the acquisition. They were “disappointed by the ruling of the New Zealand Commerce Commission against the acquisition,” and stated that they believe that the proposed agreement could have made it possible to deliver amazing products to DJs and producers worldwide by capitalizing on their complementary expertise while creating important benefits for the local music technology industry in New Zealand
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