Once in a while Jim Cramer spots a takeover that is so transformative that the acquirer skyrockets because the deal is clearly a positive. This is unusual, as typically only the company being acquired will spike on takeover news.
On Tuesday, Tessera Technologies announced it is buying DTS Inc., the maker of high-quality audio technology, for $850 million. That stands at a 23 percent premium to where DTS's stock closed on Monday.
"By acquiring DTS, this growth story gets some additional legs, powered by the internet of things, virtual reality and the connected car," the "Mad Money" host said.
Tessera is an intellectual property company that creates technology for the semiconductor industry, and then licenses it out. Its purpose is to research and develop technologies, and then send it to electronics manufacturers. Its intellectual property can be found in more than 100 billion chips.
"Tessera and DTS are the kind of companies whose products you never see, but their technology powers the devices you use every day," Cramer said.