DJ software deal abandoned
AlphaTheta and Serato have abandoned their proposed deal.
The Competition and Markets Authority (CMA) has therefore cancelled its Phase 2 merger investigation into the deal.
AlphaTheta is involved in the manufacture of DJ equipment, including mixers, controllers, DJ players and all-in-one systems under the Pioneer DJ brand, and both parties supply DJ software for laptop and desktop applications globally.
The Merger was conditional on receiving merger control clearance from the New Zealand Commerce Commission. Further to the New Zealand Commerce Commission’s decision to decline clearance of the Merger, AlphaTheta and Serato have decided to abandon the deal. On that basis, the CMA has cancelled its investigation.
For more information, visit the AlphaTheta / Serato merger inquiry case page.
Notes to editors:
- After completing its initial Phase 1 investigation in May 2024, the CMA found that the proposed deal 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.
- The CMA also found that the deal could weaken competition in various DJ hardware markets by restricting or worsening AlphaTheta’s rival DJ hardware manufacturers’ access to Serato’s software.
- The investigation also revealed concerns that AlphaTheta’s DJ hardware competitors could be disincentivised to innovate or share information with Serato as this could then be used by the combined business in their own DJ hardware product development; and that AlphaTheta could, after completion of the deal, reduce its own innovation efforts to stay only marginally ahead of its rivals.
- The CMA opened an in-depth Phase 2 investigation of the transaction on 15 May 2024.
- All media enquiries should be directed to the CMA press office by email on [email protected], or by phone on 020 3738 6460.