SRS Labs Buys Valence

SRS Labs Inc. said Wednesday it has completed its acquisition of Hong Kong-based Valence Technology Inc. for $19.5 million in cash and stock.

Valence, a maker of video CD machines, will operate as a wholly owned subsidiary of SRS Labs. Valence operates five offices located in Hong Kong and China with 130 employees.

SRS, which develops audio systems, said the acquisition should substantially increase its revenue base in China, one of its most important growth markets.