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DTS to acquire SRS Labs, aligns codecs with audio processing

updated 09:00 am EDT, Tue April 17, 2012

DTS to acquire SRS Labs for $148 million

DTS has announced that it will acquire SRS Labs for $148 million in a cash and stock transaction. The deal places a 38 percent premium on the market value of SRS Labs shares at the close of trading on April 16 at $9.50 per share. DTS says the deal will accelerate its growth in the rapidly growing mobile and other network-connected markets, while aligning its codec technology with SRS Labs audio processing technology.

DTS sees the deal as being 'highly complementary' and will expand its IP portfolio of audio technologies to over 1,000 registered or pending patents as well as trademarks. DTS has been a stalwart in the home theatre and cinema markets, but is looking to enter the mobile audio processing market, which it believes offers the company significant growth potential. SRS Labs already licenses its technology a number of third-party makers of mobile audio products including MP3 devices and phones, through to headphones.

'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.

DTS anticipates closing the deal in the third quarter of 2012 subject to regulatory and SRS Labs shareholder approval.

by MacNN Staff



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