Slide 1: DTS, Inc. to Acquire SRS Labs, Inc.
1 DTS, INC. TO ACQUIRE SRS LABS, INC. Accelerates Growth in Rapidly Growing Mobile and Other Network-Connected Markets 04/2012
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This document contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements, which are based on current expecta
Slide 3: Additional Information and Where to Find It
ADDITIONAL INFORMATION AND WHERE TO FIND IT This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale
Slide 4: Transaction Value: $9.50 per share
Transaction Value: $9.50 per share Total of $148 million in aggregate equity value, including acquired net cash of approximately $38 million as of December 31, 2011 Consideration for Outstanding Shares: Shareholders elect $9.50 per share in cash or a fixed ratio of 0.31127 shares of DTS common stock
Slide 5: Compelling Strategic and Financial Acquisition
COMPELLING STRATEGIC AND FINANCIAL ACQUISITION Combines highly complementary product portfolios – DTS’ suite of audio solutions and SRS’ range of audio processing technologies – to extend DTS’ position as a leading audio solutions provider Accelerates DTS’ strategy to provide customers with a best-i
Slide 6: SRS Labs Overview
SRS LABS OVERVIEW A leader in audio processing technologies and enhancement for consumer electronics with a 20 year history Solutions used to enhance mono, stereo and multi-channel sound, particularly in TV, PCs and mobile devices Robust patent portfolio (approximately 150 issued and pending patents
Slide 7: Best-in-Class Comprehensive Audio Solutions
HIGH BIT RATE LOW BIT RATE CODECS Broadcast PRE-PROCESSING POST-PROCESSING AUDIO PROCESSING Mobile Computer Car Home BEST-IN-CLASS COMPREHENSIVE AUDIO SOLUTIONS THE BEST SOUND ON ANY DEVICE, ANYWHERE
Slide 8: Accelerates Mobile and Network-Connected Strategy
ACCELERATES MOBILE AND NETWORK-CONNECTED STRATEGY Proliferation of digital content driving increasing demand for high quality sound on a full range of devices Network-connected market expected to grow to as many as 2 billion units sold annually by 2016 SRS’ footprint and technologies will accelerate
Slide 9: Anticipated Customer Synergies
ANTICIPATED CUSTOMER SYNERGIES SRS brings strong relationships with a number of key customers Enhances DTS’ well-diversified, global base of customers Accelerates DTS’ delivery of compelling end-to-end audio solutions to a broad base of customers Extends DTS’ ability to provide world class on-the-gr
Slide 10: Expands Footprint into Global Base of Customers
EXPANDS FOOTPRINT INTO GLOBAL BASE OF CUSTOMERS
Slide 11: Financially Compelling
FINANCIALLY COMPELLING Transaction expected to be immediately accretive on a non-GAAP basis, excluding one-time costs Transaction expected to be accretive on a GAAP basis in 2013, supported by at least $8 million in estimated annual combined cost synergies Transaction structure designed to ensure DT
Slide 12: Media & Investor Contacts
MEDIA & INVESTOR CONTACTS SARD VERBINNEN & CO FOR DTS, INC. John Christiansen Andrew Cole jchristiansen@sardverb.com acole@sardverb.com (415) 618-8750 (212) 687-8080
Slide 13: Thank You
THANK YOU DTS, the Symbol, DTS and the Symbol together, and DTS-HD are registered trademarks of DTS, Inc. Blu-ray and Blu-ray Disc are trademarks of the Blu-ray Disc Association. All other trademarks are the properties of their respective owners.