DTS has entered into an agreement to buy SRS Labs for about $148 million. Both publicly traded companies supply audio technologies used in consumer electronics products, from Blu-ray players to TVs and A/V receivers.
The transaction will combine “two highly complementary product and technology portfolios,” enable DTS to expand its intellectual property portfolio to more than 1,000 registered and pending patents and trademarks, and accelerate DTS’s expansion into mobile and other network-connected devices, DTS said.
The merger will also yield at least $8 million in estimated annual cost synergies.
The transaction extends “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 DTS chairman/CEO Jon Kirchner. “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.”
SRS Labs put itself up for sale and considered competing offers before accepting the DTS bid, SRS said. The transaction has been unanimously approved by both companies’ board of directors but must still be approved by U.S. regulators and SRS shareholders.
