DTS to Obtain Audio Patents Through Acquisition


DTS Inc. on Tuesday said that it will buy SRS Labs Inc. in a cash-and-stock deal valued at $148 million. The deal enables the audio technology company to expand its portfolio of patents and trademarks.

The Calabasas company, which owns the technology behind “surround sound” for audio and video systems, said the deal will immediately add to DTS’ profit after acquisition costs and be accretive to earnings next year. The $9.50 a share offered for the Santa Ana company’s stock is a 38.5 percent premium to the closing price on Monday.

DTS said it will finance the cash portion of the acquisition, which comprises about 50 percent of the deal, through existing cash balances and a new credit facility.

“We are bringing together two highly complementary technology and product portfolios – DTS’ suite of audio solutions and SRS’ range of audio processing technologies to expand DTS’ position as a leading solutions provider,” said Chief Executive Jon Kirchner during a conference call with analysts.

Shares were up 89 cents, or 3 percent, to $30.64 in midday trading on the Nasdaq.

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