More Broadcast Vendor M&A: DTS to Acquire SRS Labs for $148 Million

Posted by Joe Zaller
Apr 25 2012

Audio processing specialist DTS announced it will acquire all outstanding shares of SRS Labs in a cash-and-stock transaction valued at approximately $148m, including acquired net cash of approximately $38m.  Under the terms of the agreement, DTS will pay 50% cash 50% stock for SRS.

DTS said it expects the transaction to be accretive on a GAAP basis by 2013, supported by at least $8m in estimated annual combined cost synergies. Combined pro forma revenue for the two companies for the fiscal year ended December 31, 2011 was $129.8m.

SRS Labs chairman, CEO and president Thomas C.K. Yuen, is expected to join the DTS board of directors.

DTS says its technology and product range is highly complementary with SRS, and that the deal will expand its already sizeable portfolio of audio-related intellectual property, creating one of the broadest in the industry with over 1,000 registered and pending patents and trademarks.

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Related Content:

Press Release: DTS to Acquire SRS Labs in Cash-and-Stock Transaction

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