DTS to Acquire iBiquity Digital Corp., HD Radio

RADIO ONLINE | Wednesday, September 2, 2015

DTS has agreed to acquire iBiquity Digital Corp., the developer of HD Radio technology for AM/FM audio, for $172 million. DTS expects to finance the transaction through a combination of cash on hand and debt. iBiquity has driven penetration of HD Radio in the North American automotive OEM market to include every one of he 36 major auto brands serving the U.S. market. The company's technology was built into approximately 35% of cars sold in the U.S. in 2014.

"DTS has long been at the forefront of the highest quality audio technology, and we saw a similar spirit at iBiquity, which identified an opportunity to revolutionize traditional AM/FM broadcasting and is now strongly positioned to capitalize on broadcast radio's ongoing digital upgrade," said DTS Chairman/CEO Jon Kirchner. "This transaction extends our strategy of delivering a personalized, immersive and compelling experience across the network-connected entertainment value chain, and complements our existing suite of technology and content delivery solutions while enabling us to strengthen our position in the large automotive OEM market."

"We are excited to join forces with DTS, a true pioneer in high definition audio," said iBiquity President/CEO Bob Struble. "In DTS, we have found a like-minded partner and we look forward to bringing our breakthrough HD Radio technology to the DTS portfolio of solutions. Today's announcement is an exciting step forward for our employees and customers, who will benefit from the additional scale and enhanced resources of a larger collective company."

The transaction of the privately-held company is expected to close later in 2015. iBiquity Digital is based in Columbia, MD, with approximately 120 employees. After closing, Bob Struble will continue to lead the HD Radio business for DTS.