Robbins Arroyo LLP: Acquisition of DTS, Inc. (DTSI) by Tessera Technologies, Inc. (TSRA) May Not Be in Shareholders’ Best Interests
Robbins Arroyo LLP is investigating the proposed acquisition of DTS, Inc. (NASDAQ: DTSI) by Tessera Technologies, Inc. (NASDAQ: TSRA). On September 20, 2016, the two companies announced the signing of a definitive merger agreement pursuant to which Tessera will acquire DTS. Under the terms of the agreement, DTS shareholders will receive $42.50 for each share of DTS common stock.
Is the Proposed Acquisition Best for DTS and Its Shareholders?
Robbins Arroyo LLP’s investigation focuses on whether the board of directors at DTS is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On August 8, 2016, DTS reported strong earnings results for its second quarter 2016. DTS reported revenue of $48.7 million for the three months ended June 30, 2016, a 41% increase from the same period of the prior year. Additionally, DTS has beaten analyst estimates for revenue, adjusted net income, and adjusted earnings per share in three of the past four consecutive quarters. In commenting on these results, DTS Chairman of the Board and Chief Executive Officer Jon Kirchner remarked, “We had a strong second quarter driven by solid performance in automotive and continued momentum across the mobile markets…. As a result of this strong performance, we are raising the low end of our full year 2016 revenue outlook and increasing our earnings outlook to reflect our confidence in the second half of 2016. Importantly, our business continues to generate improving operating margins and strong cash flow, and we are focused on optimizing our balance sheet and cash flow to generate value for shareholders.”
In light of these facts, Robbins Arroyo LLP is examining DTS’s board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
DTS shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
DTS shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.