DTS Inc. announced today it has entered into an agreement to acquire iBiquity Digital Corp., a developer of digital HD Radio technology for AM/FM audio and data broadcasting, for approximately $172 million. DTS plans to finance the transaction through a combination of cash on hand and debt.
“iBiquity is the exclusive developer and licensor of HD Radio technology, the sole FCC-approved method for upgrading AM/FM broadcasting from analog to digital,” DTS said in an announcement. “HD Radio technology provides compelling benefits, including improved audio quality, expanded content choices and new digital data services such as album cover art and real-time traffic updates. iBiquity's partners include leading automakers, consumer electronics and broadcast equipment manufacturers, radio broadcasters, semiconductor and electronic component manufacturers and retailers.”
According to DTS, iBiquity has successfully driven penetration of HD Radio technology in the North American automotive OEM market. “Every one of the 36 major auto brands serving the U.S. market offers HD Radio technology on some of their vehicles, many as standard equipment,” DTS announced. “The Company's technology was built into approximately 35 percent of cars sold in the U.S. in 2014, and DTS expects the majority of North American vehicles to come equipped with HD Radio technology over time.”