The merger was initially proposed in July 2023.
The New Zealand Commerce Commission (NZCC) has rejected Alpha Theta's proposed acquisition of Serato. Alpha Theta is the parent company of Pioneer DJ.
The merger, proposed last July, would have added Serato to Alpha Theta's portfolio. Dr. John Small, NZCC chairman, said the merger could significantly reduce competition. The NZCC found that the merger would give Alpha Theta substantial market dominance in DJ hardware and software.
The NZCC stated, “Evidence showed Serato and rekordbox are close competitors. Remaining providers wouldn't sufficiently replace lost competition. The merger could lessen competition, leading to higher prices and lower software quality.”
Both companies plan to appeal. Yoshinori Kataoka, President and CEO of AlphaTheta, expressed disappointment with the decision. He said, “We believe the acquisition would enhance our ability to deliver exceptional products globally by leveraging our expertise.”
Despite the ruling, Kataoka emphasized their strong partnership with Serato. He expressed confidence in continuing to advance music technology.
In May, the UK Government released initial findings on the acquisition. The Competitions and Markets Authority (CMA) found the deal could impact DJ software prices, quality, and innovation. The deal would create a supplier nearly twice the size of its closest competitor.
Earlier this year, AlphaTheta Corporation, Pioneer DJ's parent company, introduced a new brand for DJ products.