DTS To Acquire SRS Labs

DTS has entered into a definitive agreement to acquire all shares of SRS Labs for a mix of cash and stock.
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New York (April 18, 2012)—DTS has entered into a definitive agreement to acquire all shares of SRS Labs for a mix of cash and stock.

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The two companies value the transaction at $9.50 per share, or a total of approximately $148 million in aggregate equity value, including acquired net cash of approximately $38 million as of December 31, 2011. This represents a premium of 38% per share over SRS Labs’ stock price as of the close of trading on April 16, 2012.

The transaction brings together DTS’ suite of audio solutions and SRS Labs’ range of audio processing technologies. Through the transaction, DTS will expand its audio-related intellectual property, creating a library of over 1,000 registered and pending patents and trademarks. DTS expects the move to “fast-track” its expansion in mobile and other network-connected devices, while realizing some operating, customer and licensing cost efficiencies.

“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. “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. 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.”

“We are pleased to provide our shareholders an attractive premium,” said Thomas C.K. Yuen, SRS Labs’ chairman, CEO and president. “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. We look forward to making the collective resources of a larger company available to our customers around the world, who will also benefit from superior customer service.”

DTS, Inc.
www.dts.com

SRS Labs, Inc.
www.srslabs.com