Tessera Technologies, leader in developing innovative imaging and semiconductor packaging and bonding technologies, will acquire one of the main audio providers for mobile, home, and automotive markets, DTS. By uniting their strengths, the companies will provide next-gen audio and imaging solutions for CE, mobile but also IoT and mixed reality #todaymagic
“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 Tom Lacey, Tessera CEO.
This strategic move translates into 450 engineers focused on developing next-generation imaging, audio and semiconductor packaging technologies for the products of tomorrow. Tessera has two subsidiaries, FotoNation (leader in computational imaging algorithms) and Invensas (leading provider of advanced semiconductor packaging and 3D interconnect technologies).
The combined company is forecasted to achieve pro forma 2016 revenue of approximately $450 million, nearly half of which will come from product licensing. The all-cash transaction is valued at approximately $850 million.
Once Tessera will make the acquisition final, you will see a new corporate name and stock symbol that will represent the combined company’s capabilities and technologies. “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 Jon Kirchner, chairman and CEO of DTS. “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.”
At the closing of the transaction, Lacey will continue to serve as CEO and Kirchner is expected to join as President of the combined company. Closing of the transaction is expected by late fourth quarter of 2016 or early first quarter of 2017, and is subject to regulatory approval as well as the approval of DTS’s stockholders and other customary closing conditions.
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