iBiquity, developer of HD Radio, has entered an agreement to be purchased by DTS, which makes surround sound solutions, for approximately $172 million.
HD Radio technology is built into about 35 percent of cars in the US. (as of 2014). Over time, DTS expects the majority of North American vehicles to come equipped with HD Radio technology and it hopes to benefit from iBiquity’s relationship with car companies. Conversely, the deal provides iBiquity with additional resources, it said.
“DTS has long been at the forefront of the highest quality audio technology, and we saw a similar spirit at iBiquity…” said Jon Kirchner, CEO of DTS. “…Consumers have come to expect a higher quality sound experience in their car, and we believe there is a tremendous opportunity for DTS to capitalize on the upgrade to HD Radio technology as cars are increasingly equipped with screens and advanced entertainment systems. We are thrilled to welcome the talented iBiquity team to the DTS family.”
The deal is expected to close later in 2015 and iBiquity CEO Bob Struble will continue to lead the business for DTS.
Struble said, “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.”
DTS, Inc., founded in 1993, produces audio technology that is included in more than 2 billion devices around the world.
iBiquity Digital Corporation is a privately held company based in Columbia, Maryland with approximately 120 employees.
