Tessera Technologies To Acquire HD Radio Parent DTS

Tessera Technologies To Acquire HD Radio Parent

TESSERA TECHNOLOGIES and HD RADIO parent company DTS have entered into a definitive agreement under which TESSERA will acquire DTS for $42.50 per share, representing a 28% premium to DTS’s 30-day volume weighted average price as of SEPTEMBER 19, 2016. The all-cash transaction is valued at approximately $850 million.

The combined company is expected to realize $15 million in annualized cost synergies within the first 12-18 months following the closing of the transaction and anticipates revenue synergies from the expansion of addressable markets and leveraging of complementary customer channels and technologies.

“Our acquisition of DTS’s talented team and industry-leading products will represent a transformational step in the execution of TESSERA’s strategic vision, with exciting new product development and marketing opportunities. We expect this acquisition to be immediately accretive to TESSERA’s earnings and accelerate growth. 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 TESSERA CEO TOM LACEY. “I am particularly excited that Jon Kirchner and the exceptional DTS team will join the Tessera family as we continue to grow and expand the DTS brand.”

“This is an exciting transaction that provides substantial and immediate value to our shareholders. We look forward to working closely with TOM and the TESSERA team to achieve a smooth integration and pursuing the attractive opportunities ahead,” said ,DTS Chairman/CEO JON KIRCHNER. “We believe that as part of TESSERA we will be in a unique position to deliver the world’s leading audio and imaging solutions to all of our key markets and drive meaningful value for our combined customers, partners and employees.”

« see more Net News