DTS to acquire SRS LABS

Cash-and-stock deal brings together leaders in codec solutions and audio processing.
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DTS, Inc., a leader in high-definition audio, and SRS Labs, Inc., a specialist in audio processing and enhancement technologies, today announced that they have entered into a definitive agreement under which DTS will acquire all outstanding shares of SRS Labs. The estimated purchase price is $148 million.

The transaction combines two highly complementary product and technology portfolios, enabling DTS to expand its portfolio of audio-related intellectual property to include over 1,000 registered and pending patents and trademarks. The combination accelerates DTS’ strategy to provide customers with a best-in-class, comprehensive integrated suite of audio solutions ranging from voice processing through audio rendering, and from low bit-rate applications to high-quality lossless audio delivery. The combination is anticipated to fast-track DTS’ expansion in the rapidly growing markets for mobile and other network-connected devices, while gaining significant operating, customer and licensing cost efficiencies.

“This transaction represents an exciting extension of our strategic focus,” said Jon Kirchner, DTS’ chairman and CEO. “SRS Labs and its strong portfolio of audio processing technologies are a natural strategic fit for DTS, with complementary technologies, robust anticipated customer synergies, and significant economies of scale. 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 acquisition is the result of a comprehensive process undertaken by SRS Labs’ board of directors, which unanimously concluded that DTS’ offer was in the best interests of SRS Labs and its shareholders. DTS anticipates closing the transaction in the third quarter of 2012. Upon closing, Thomas C.K. Yuen, chairman, CEO and president of SRS Labs, is expected to join the DTS board of directors.