Neural Audio Acquired by DTS for $7.5M

Kirkland, WA-based Neural Audio, a digital sound company, has been acquired by DTS (NASDAQ: [[ticker:DTSI]]), a technology and entertainment firm in Agoura Hills, CA. The purchase price was $7.5 million in cash, with DTS also agreeing to pay up to $7.5 million more over the next five years if certain conditions are met. No other terms were disclosed. The deal closed on December 31.

Neural Audio focuses on audio signal processing for playback of music, movies, broadcast programs, and video games. Its main markets are digital TV, satellite radio, consumer electronics, and gaming. “The acquisition of Neural Audio strengthens DTS’ position in the important broadcast and automotive markets while also providing immediate access to the evolving satellite and HD radio industries,” said Jon Kirchner, president and chief executive of DTS, in a statement. “We are acquiring an extremely talented team of professionals who we expect will enhance our technology expertise and market knowledge.”

No word yet on the fate of Neural Audio’s Kirkland office, or its employees. The company was founded in 2000 by engineers Paul Hubert and Robert Reams, with the goal of commercializing signal-processing techniques to improve the quality of music files and other audio programs.

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.