We look forward to working closely with Tom and the Tessera team to achieve a smooth integration and pursuing the attractive opportunities ahead,” said Kirchner. “This is an exciting transaction that provides substantial and immediate value to our shareholders. “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.”
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 Lacey.
We expect this acquisition to be immediately accretive to Tessera’s earnings and accelerate growth. “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. In order to better reflect the combined company’s capabilities and technologies, a new corporate name and stock symbol will be adopted in connection with the closing of the transaction.
#Tessera technologies free
The combined company is expected to generate significant free cash flow that will provide flexibility to retire debt, fund quarterly dividends, explore M&A opportunities, and continue investments into its business units.
#Tessera technologies pro
The combined company will maintain a strong balance sheet with pro forma cash and investments of approximately $100 million. Tessera intends to fund the acquisition with a combination of available cash on hand and approximately $600 million of committed debt financing from RBC Capital Markets. The combined company is expected to realize $15 million in annualized cost synergies within the first 12-18 months following the closing of the transaction and anticipates revenue synergies from the expansion of addressable markets and leveraging of complementary customer channels and technologies. The transaction will be immediately accretive to Tessera’s earnings per share and free cash flow. The combined company is forecasted to achieve pro forma 2016 revenue of approximately $450 million, nearly half of which will come from product licensing. In addition, the acquisition adds significant scale and diversifies revenue across end markets and customers. Upon completion of the acquisition, the combined company will be one of the world’s largest product and technology licensing companies, with over 450 engineers focused on developing next-generation imaging, audio and semiconductor packaging technologies. At the closing of the transaction, Tessera CEO Tom Lacey will continue to serve as CEO, while and Chairman and CEO of DTS Jon Kirchner is expected to become President of the combined company. Closing of the transaction is expected by late fourth quarter of 2016 or early first quarter of 2017. Technology licensing firm Tessera Technologies has agreed to acquire audio-solution provider DTS in a deal valued at approximately $850 million.
0 kommentar(er)
