DTS and SRS Labs have entered into a definitive agreement under which DTS will acquire all outstanding shares of SRS Labs in a cash-and-stock transaction - a total of approximately $148 million in aggregate equity value.

The transaction combines two product and technology portfolios, bringing together DTS' suite of audio solutions and SRS Labs' range of audio processing technologies. Through the transaction, DTS will expand its portfolio of audio-related intellectual property, which will include over 1,000 registered and pending patents and trademarks. DTS strategy is to provide integrated suite of audio solutions ranging from voice processing through audio rendering, and from low bit rate applications to high-quality lossless audio delivery. It will also help DTS expand in the rapidly growing markets for mobile and other network-connected devices.