The new owner of HD Radio now has a new owner of its own.
Tessera Technologies Inc., which is in the business of imaging and semiconductor packaging and bonding technologies, will acquire audio company DTS Inc. in a cash deal valued at about $850 million.
That’s $42.50 per share, “representing a 28% premium to DTS’s 30-day volume weighted average price as of September 19, 2016,” they announced.
Tom Lacey, Tessera CEO, was quoted in the announcement, “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.” Lacey will stay as CEO while Kirchner is expected to join as president of the combined company.
“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,” he said.
Tessera described itself post-acquisition as offering products to “enable the creation of an expanded, integrated platform to invent the future of smart sight and sound.” It said it will have “over 450 engineers focused on developing next-generation imaging, audio and semiconductor packaging technologies,” and projected pro forma 2016 revenue of $450 million, “nearly half of which will come from product licensing.”
DTS audio products include the recently acquired HD Radio but also DTS-HD and DTS:X audio codecs, DTS Headphone:X and DTS Sound pre-and post processing solutions and DTS Play-Fi wireless audio.
Both companies’ boards have approved the deal. Closing is expected by late fourth quarter or early next year pending regulatory and DTS stockholders approval.
