DTS to Acquire SRS Labs for $148 Million17 Apr, 2012 By: Chris Tribbey
Audio company DTS Inc. will acquire audio processing and enhancement technology company SRS Labs in a cash-and-stock transaction valued at approximately $148 million.
The deal includes a cash transaction of approximately $38 million and has DTS buying all outstanding shares of SRS Labs at $9.50 per share, a premium of nearly 40% over the share’s closing price at the close of trading April 16.
The acquisition gives DTS a suite of audio processing technologies to pair with its own audio solutions and will bring DTS’ registered and pending patents and trademarks to more than 1,000.
“This transaction represents an exciting extension of our strategic focus on the compelling long-term opportunities being driven by cloud-based entertainment delivery and the proliferation of connected devices, enabling DTS to accelerate our expansion in the key growth areas of mobile and other network-connected device markets, as well as to drive innovation and create significant near- and long-term value for our shareholders,” said Jon Kirchner, DTS' chairman and CEO. “This transaction will accelerate DTS' delivery of compelling end-to-end solutions to a broad base of customers, enable even higher levels of service and provide the company with a solid platform for continued growth.”
The boards of directors of both companies unanimously approved the transaction. Under the terms of the agreement, SRS Labs shareholders can elect to receive either $9.50 per share in cash or a fixed ratio of 0.31127 shares of DTS common stock for every share of SRS Labs common stock they own.
"We are pleased to provide our shareholders an attractive premium," said Thomas C.K. Yuen, SRS Labs' chairman, CEO and president. "As consumers increasingly demand higher-quality audio experiences everywhere from their mobile devices to their homes, this combination benefits our customers and employees by creating significant scale and penetrating new markets."