Tessera Technologies, a company mainly involved in licensing technology to the semiconductor industry, is set to buy DTS for about $850 million in a cash deal.
The new, combined company will be given a new corporate name once the the deal is done and will be led by Tessera Chief Exec Tom Lacey, with DTS CEO Jon Kirchner expected to join as president. The deal is expected to be finalised by the end of Q4 2016 or early in Q1 2017.
Tessera is paying $42.50 per share for DTS, whose own licensing deals for audio technology are integrated in over 2 billion devices
"Our complementary technology portfolios are ideally suited to deliver the next generation of audio and imaging solutions to mobile, consumer electronics and automotive markets," says Tessera's CEO.
The combined company has been projected to reach 2016 revenue of about $450 million, nearly half of which will come from the various product licensing deals.
“The transaction will combine market leading audio and imaging innovators with complementary products, technologies, customer channels and intellectual property assets to enable the creation of an expanded, integrated platform to invent the future of smart sight and sound," the companies said. "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."
The deal is somewhat comparable to the one earlier in 2016 which saw Bowers & Wilkins sold to an unknown US start-up although Tessera are clearly a more established company.
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