Shareholders of pioneering audio technology company DTS, parent company of HD Radio, will give their yay or nay to an $850 million acquisition offer from Tessera Technologies on December 1.
Owners of DTS stocks have been invited to a special stockholder meeting set for 8 a.m. on the first of December, at the Westlake Village Inn in Southern California’s Conejo Valley, some 45 minutes northwest of Los Angeles.
Shareholders of record at the close of business Oct. 20 may cast their vote on the combination of DTS with a leading developer of imaging and semiconductor packaging and bonding technologies.
If the deal is approved, it will mark the second change in hands for HD Radio in a year.
In October 2015, pioneering audio technology company DTS took a bold step into the radio industry by acquiring HD radio’s exclusive licensor and developer in the U.S., iBiquity Digital Corp. for $172 million.
Now, all signs point to a shareholder OK of the Tessera purchase.
Once the deal closes, DTS shareholders will receive $42.50, less any required tax withholdings, for each share of DTS common stock owned. This effectively ends the shareholders’ investment in DTS, as they will have “no ownership interest” in the continuing business of DTS, Tessera or the yet-to-be-named successor company that will result from the merger acquisition.
According to DTS’s board of directors, which reviewed and considered the terms and conditions of the deal, “the DTS merger is fair to, advisable and in the best interests of DTS and its stockholders,” resulting in its unanimous approval by the board.
In addition to the merger vote, shareholders will have the right to vote on a proposal to approve — on a non-binding, advisory basis — merger-related compensation for DTS’s named executive officers.
Proxy statements have been distributed to shareholders.
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