Dolby Laboratories (NYSE:DLB) today announced it has signed a definitive agreement to acquire BrightSide Technologies Inc., a privately held provider of high dynamic range (HDR) image technology, for cash consideration of approximately $28 million. The transaction is subject to customary closing conditions and is expected to be completed prior to the end of the third quarter of Dolby’s 2007 fiscal year.

BrightSide is a development-stage technology company focused on enabling the capture, distribution, and display of more vibrant video on mass-market LCD TV sets, as well as front-projection and rear-projection TVs.

“Dolby has built its strong reputation and brand by delivering products and technologies that make the entertainment experience more realistic and immersive, and BrightSide’s HDR image technology complements that strategy,” said Bill Jasper, President and Chief Executive Officer, Dolby Laboratories. “Acquiring BrightSide reflects our long-term focus on delivering innovative technology solutions to our licensees and their customers.”