SRS Labs Inc., the Santa Ana-based leader in audio processing and enhancement technologies, will enter an agreement with DTS Inc., a high-definition audio company, in which DTS will acquire all outstanding shares of SRS Labs in a cash-and-stock transaction.
For every share of SRS Labs common stock they own, shareholders will be able to choose to receive either $9.50 per share in cash or a fixed ratio of 0.31127 shares of DTS common stock.
The merger will combine DTS’ suite of audio solutions with SRS Labs’ audio processing technologies to speed up DTS’s expansion into the mobile industry and other network-connected device segment.
“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,” said Jon Kirchner, DTS’ chairman and CEO. “This transaction will accelerate DTS’ delivery of compelling end-to-end solutions to a broad base of customers, enable even higher levels of service, and provide the company with a solid platform for continued growth.”
SRS Labs consulted with their board, advised by legal and financial advisors, in order to determine the best interests of the company in the acquisition.
“As consumers increasingly demand higher quality audio experiences everywhere from their mobile devices to their homes, this combination benefits our customers and employees by creating significant scale and penetrating new markets,” said Thomas C.K. Yuen, SRS Labs’ chairman, CEO and president.
About.com recognizes SRS Labs for music app
SRS Labs partners with audio software provider
SRS Labs named one of America’s Greatest Brands