DTS and SRS Labs to mix into one huge completely happy household

DTS and SRS Labs to combine into one big happy family

You’ve got in all probability heard of each DTS and SRS Labs or seen their logos, however you won’t have the ability to clarify precisely what these corporations do. To place it merely: each improve the sound from our electronics, and now, they will be doing it collectively. In a money-and-inventory deal value slightly below $10 a share DTS will purchase SRS Labs, giving the brand new firm over a thousand audio associated patents (what else?) and logos. The deal is valued at about $148 million and anticipated to be accretive to DTS by 2013. It is exhausting to foretell what this may imply for us shoppers, however we’re positive each hope that when two nice corporations get collectively they discover new methods to make higher merchandise. In fact,, that is not all the time how these offers end up.

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DTS TO ACQUIRE SRS LABS IN CASH-AND-STOCK TRANSACTION Mixture Accelerates Progress in Quickly Rising Cellular and Different Community-Related Markets Brings Collectively Leaders in Codec Options and Audio Processing Transaction Anticipated to be Accretive to DTS by 2013

CALABASAS, Calif. and SANTA ANA, Calif. (April 17, 2012) – DTS, Inc. (Nasdaq: DTSI), a pacesetter in excessive-definition audio, and SRS Labs, Inc. (Nasdaq: SRSL), a pacesetter in audio processing and enhancement applied sciences, immediately introduced that they’ve entered right into a definitive settlement beneath which DTS will purchase all excellent shares of SRS Labs in a money-and-inventory transaction valued at $9.50 per share, or a complete of roughly $148 million in combination fairness worth, together with acquired internet money of roughly $38 million as of December 31, 2011. The consideration represents a premium of 38% per share over SRS Labs’ inventory worth as of the shut of buying and selling on April sixteen, 2012. Beneath the phrases of the settlement, the money and inventory elements will every equal 50% of the mixture consideration paid by DTS for SRS Labs’ excellent shares. The DTS widespread inventory to be issued within the transaction was valued at $30.fifty two per share, the closing worth per share of DTS widespread inventory on April 12, 2012. All SRS Labs choices and restricted inventory models will absolutely vest instantly previous to and be canceled upon the closing of the transaction, and the holders thereof can be entitled to obtain the $9.50 worth per share (much less the train worth of any choice) payable in money.

The transaction combines two extremely complementary product and know-how portfolios, bringing collectively DTS’ suite of audio options and SRS Labs’ vary of audio processing applied sciences. By means of the transaction, DTS will broaden its already sizeable portfolio of audio-associated mental property, creating one of many broadest within the business with over 1,000 registered and pending patents and logos. The mixture accelerates DTS’ technique to offer clients with a greatest-in-class, complete built-in suite of audio options starting from voice processing by way of audio rendering, and from low bit price purposes to excessive-high quality lossless audio supply. The mixture is anticipated to quick-monitor DTS’ enlargement within the quickly rising markets for cellular and different community-related units, whereas vital working, buyer and licensing value efficiencies are anticipated to be realized.

“This transaction represents an thrilling extension of our strategic concentrate on the compelling lengthy-time period alternatives being pushed by cloud-based mostly leisure supply and the proliferation of related units, enabling DTS to speed up our enlargement in the important thing progress areas of cellular and different community-related gadget markets, in addition to to drive innovation and create vital close to- and lengthy-time period worth for our shareholders,” stated Jon Kirchner, DTS’ chairman and CEO. “SRS Labs and its robust portfolio of audio processing applied sciences are a pure strategic match for DTS, with complementary applied sciences, strong anticipated buyer synergies, and vital economies of scale. This transaction will speed up DTS’ supply of compelling finish-to-finish options to a broad base of consumers, allow even larger ranges of service, and supply the Firm with a strong platform for continued progress.”

“We’re happy to offer our shareholders a lovely premium,” stated Thomas C.Okay. Yuen, SRS Labs’ chairman, CEO and president. “As shoppers more and more demand larger high quality audio experiences all over the place from their cellular units to their houses, this mix advantages our clients and staff by creating vital scale and penetrating new markets. We sit up for making the collective assets of a bigger firm out there to our clients all over the world, who may even profit from superior customer support.” DTS expects the transaction to be accretive on a GAAP foundation by 2013, supported by a minimum of $eight million in estimated annual mixed value synergies. Mix professional forma income for the Firm for the fiscal yr ended December 31, 2011 was $129.eight million.

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