HD audio vendor DTS, Inc. has acquired SRS Labs, a provider of audio processing and enhancement technologies. The cash and stock deal for SRS Labs shares was valued at approximately $148 million in aggregate equity value, including acquired net cash of approximately $38 million as of December 31, 2011, according to the companies.
In announcing the deal, the DTS argued that the transaction combines two highly complementary product and technology portfolios that will expand DTS's portfolio of audio-related intellectual property to over 1,000 registered and pending patents and trademarks.
DTS also expects that the deal will boost their expansion into the rapidly growing markets for mobile and other network-connected devices.
"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, in a statement.
DTS expects the transaction to improve profits in 2013. Combined pro forma revenue for the Company for the fiscal year ended December 31, 2011 was $129.8 million.