Tessera Acquires DTS

San Jose, Calif.-based tech company Tessera Technologies announced Sept. 20 it has agreed to acquire sound technology company DTS, giving it one of the top audio players in the entertainment industry.

The all-cash transaction is valued at roughly $850 million and could close by the end of the year.

“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,” Tessera CEO Tom Lacey said in a statement. “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.”

Tessera noted the addition of DTS will give it audio technologies with its imaging offerings that will enable creation with more than 450 engineers combined. Lacey will continue to serve as CEO, while Jon Kirchner is expected to come on to Tessera as president.

“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.”