DTS to Buy Radio Firm iBiquity for $172 Million
September 02 2015 - 8:30AM
Dow Jones News
Audio-technology company DTS Inc. on Wednesday said it would
acquire HD radio technology firm iBiquity Digital Corp. for $172
million, a move to capitalize on broadcast radio's digital
upgrade.
Privately held iBiquity, which counts radio broadcasters
iHeartMedia and CBS Radio among its investors, was formed when USA
Digital Radio merged with Lucent Digital Radio in 2000.
IBiquity is the developer and licenser of HD Radio technology,
the Federal Communications Commission-approved method for upgrading
AM/FM broadcasting from analog to digital.
"Consumers have come to expect a higher-quality sound experience
in their car," DTS Chief Executive Jon Kirchner said, and there is
"opportunity for DTS to capitalize on the upgrade to HD Radio
technology as cars are increasingly equipped with screens and
advanced entertainment systems."
In 2014, iBiquity's technology was built into about a third of
cars sold in the U.S., according to DTS.
The companies expect to complete the transaction later this
year. The addition of iBiquity will add to earnings beginning in
2016, DTS said.
The combination is also expected to provide opportunities for
additional geographic, service and technology expansion, DTS
said.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 02, 2015 08:15 ET (12:15 GMT)
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