San Jose, CA / Calabasas, CA (September 26, 2016)—Imaging and semiconductor packaging and bonding technology company Tessera Technologies has announced that it is acquiring DTS in an all-cash transaction valued at approximately $850 million.
According to a joint statement, the transaction will combine audio and imaging companies with complementary products, technologies, customer channels and intellectual property assets to enable the creation of an expanded, integrated platform for “smart sight and sound.” Upon completion of the acquisition, the combined company will be one of the world’s leading product and technology licensing companies, with over 450 engineers focused on developing next-generation imaging, audio and semiconductor packaging technologies.
In addition, the acquisition adds significant scale and diversifies revenue across end markets and customers. The combined company is forecasted to achieve pro forma 2016 revenue of approximately $450 million, nearly half of which will come from product licensing.
DTS’s audio solutions include DTS-HD and DTS:X audio codecs, DTS Headphone:X and DTS Sound pre-and post-processing solutions, DTS Play-Fi wireless audio, and HD Radio.
“Our complementary technology portfolios are ideally suited to deliver the next generation of audio and imaging solutions to mobile, consumer electronics, and automotive markets while expanding our ability to address incredible new opportunities in IoT and AR/VR,” said Tom Lacey, Tessera CEO.
Lacey will continue to serve as CEO and Jon Kirchner, chairman and CEO of DTS, is expected to join as president of the combined company.