(Reuters) - Patent licensing company Tessera Technologies Inc said on Tuesday it would buy audio equipment maker DTS Inc for about $850 million in cash.
The deal will help increase the combined company's presence in the consumer electronics, mobile, automotive and semiconductor markets.
Tessera's offer of $42.50 per share represents a 24 percent premium to DTS's close on Monday.
The combined company expects about $450 million in pro forma revenue for 2016, nearly half of which will come from product licensing.
Tessera said the deal would immediately add to its earnings per share and free cash flow.
GCA is Tessera's financial adviser, while Centerview advising DTS.
(Reporting by Rishika Sadam in Bengaluru; Editing by Savio D'Souza and Saumyadeb Chakrabarty)
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