SRS Labs Buy Has China in Mind
<i> Dow Jones</i>
SANTA ANA —
SRS Labs Inc. said Wednesday it has agreed to acquire Hong Kong-based Valence Technology Inc. for $19.5 million in cash and stock.
SRS Chairman and Chief Executive Thomas Yuen said the acquisition will give his company a substantial revenue base in China’s market for video CD machines, which are popular as sing-along machines.
He said the video CD machines, which Valence makes and which may evolve into China’s version of Internet-ready set-top boxes, also represent a big opportunity to spread the use of SRS’ sound technology.
Yuen said that SRS will pay $7.4 million in cash and 1.8 million shares of SRS stock for Valence. SRS expects to take an as-yet unspecified, one-time charge against earnings for in-process research and development.
