Subsequent Events

3 Months Ended

Mar. 31, 2012

Subsequent Events

Subsequent Events

8.Subsequent Events

On April 16, 2012, the Company and DTS entered into the Merger Agreement under which DTS will acquire all outstanding shares of SRS in a cash-and-stock transaction valued at $9.50 per share in cash or 0.31127 of a share of DTS common stock per share in stock, or a total of approximately $148 million in aggregate equity value as of April 16, 2012, including acquired net cash of approximately $38 million as of December 31, 2011. Under the terms of the Merger Agreement, 50% of the total shares of the Company’s common stock issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive the cash component of the Merger consideration and 50% of the total shares of the shares of the Company’s common stock issued and outstanding immediately prior to the effective time of the Merger will be converted into the right to receive the stock component of the Merger consideration. All SRS stock options and restricted stock units will fully vest immediately prior to and be canceled upon the closing of the Merger, and the holders thereof will be entitled to receive the $9.50 price per share (less the exercise price of any option) payable in cash.