Agoura Hills, CA (January 8, 2009)--DTS, Inc. has acquired Neural Audio, an audio technology business that licenses branded intellectual property solutions for the creation, distribution and playback of music, movies, broadcast programs and video games. Additionally, DTS has announced its plans to expand its engineering and technology capabilities with the hiring of key executives and opening of an R&D facility in Silicon Valley.
The acquisition of Neural Audio, located in Kirkland, WA, will expand DTS' branded technology offerings focused on the broadcast, satellite radio, automotive and gaming markets. The acquisition brings aboard Geir Skaaden, CEO; Mark Seigle, President & COO; Jeff Thompson, Director of Engineering; and Chief Scientist James "JJ" Johnston. Mr. Johnston is a pioneer in the field of perceptual audio coding, having made contributions to the development of the AAC (Advanced Audio Coding) and MP3 formats, which revolutionized the encoding and delivery of digital audio.
"We believe that the acquisition of Neural Audio strengthens DTS' position in the important broadcast and automotive markets while also providing immediate access to the evolving satellite and HD radio industries," said Jon Kirchner, President and CEO of DTS. "In addition and very importantly, we are acquiring an extremely talented team of professionals who we expect will enhance our technology expertise and market knowledge, and help drive our efforts to sell value-added, branded enhancement technologies into the emerging internet, PC and mobile markets for years to come."
Under the terms of the purchase agreement DTS paid $7.5 million in cash for certain assets and liabilities of Neural Audio Corporation and may pay up to $7.5 million of additional cash consideration over the next five years if certain conditions are met. The transaction closed on December 31, 2008 and is expected to be accretive in 2009.
Separately, DTS announced the hiring of several other key executives and its plans to open a research and development facility in Silicon Valley in order to focus on furthering its development around technologies for the online, PC and mobile device markets. Joining DTS and heading the R&D effort in Silicon Valley will be Dr. Jean-Marc Jot, who formerly led the development of next generation audio playback enhancement technologies and intellectual properties for Creative Labs Advanced Technology Centre. DTS also announced the addition of Principal Audio Engineer Dr. Martin Walsh, and Senior Audio Engineer Edward Stein, also formerly of the Creative Labs Advanced Technology Centre.
"With the hiring of these key executives, DTS furthers its commitment to advancing our strategy of developing compelling audio enhancement technologies for the online, PC and mobile device markets," said Rick Beaton, Senior VP R&D and Engineering for DTS Inc.