Tessera Technologies, which licenses technology mainly to the semiconductor industry, said it would buy DTS, a provider of audio technology for mobile devices, home theater systems and cars, for about $850 million in cash.

Tessera’s technology licenses include semiconductor packaging and imaging products for mobile and other vision systems, while DTS’s strength lies in audio technology, where its licenses are used in more than 2 billion products.

The combined company will have a major presence in the consumer electronics, mobile, automotive and semiconductor markets, with its customers including Microsoft Corp, Qualcomm Inc and Sony Corp.

Get Data Sheet, Fortune’s technology newsletter.

DTS dtsi shares were up nearly 23% at $42.22, just shy of Tessera’s offer of $42.50 per share and at their highest levels since July 2011. Tessera’s tsra shares were up 2.45% at $34.30 in morning trading on Tuesday.

The combined company will generate an estimated $450 million in proforma revenue for 2016, nearly half of which will come from product licensing, Tessera said.

Tessera said it expects the deal to immediately add to its earnings per share and free cash flow.

The company said the deal would be financed through available cash on hand and about $600 million of debt financing from RBC Capital Markets.

Check Out How Jurassic World Got Its Wild Sound Effects

The combined company will have a new corporate name and stock symbol after the deal closes. It will be led by Tessera Chief Executive Tom Lacey, while DTS CEO Jon Kirchner is expected to join as president.

The deal is expected to close by late in the fourth quarter or early in the first quarter, Tessera said.

The combined company is expected to realize $15 million in annualized cost synergies within the first 12-18 months following the closing of the deal, Tessera said.

GCA is Tessera’s financial adviser and Skadden, Arps, Slate, Meagher & Flom LLP its legal adviser.

Centerview is DTS’s financial adviser and DLA Piper LLP gave legal counsel.