High-def audio company DTS, Inc., announced on Monday that it completed its acquisition of iBiquity Digital Corporation for around $172 million. The purchase, which was completed with a combination of cash and debt, fits DTS’s mission to “deliver a personalized, immersive, and compelling experience across the network-connected entertainment value chain,” the company said in a statement.
iBiquity, the exclusive developer and licensor of HD Radio technology, is the only Federal Communications Commission-approved method for upgrading AM/FM broadcasting signals from analog to digital. iBiquity has partnered to share its technology with a number of companies in the automobile, consumer electronics, and broadcast equipment manufacturers.
"We are thrilled to bring together two companies focused on delivering the highest quality experiences across the digital entertainment spectrum," Jon Kirchner, chairman and CEO of DTS, said in a statement. "This acquisition bolsters our prospects for attractive, long-term growth by increasing our footprint in the broadcast and automotive spaces and adding key IP and technology to our portfolio. We are pleased to welcome Bob Struble and the talented HD Radio team to the DTS family and look forward to working together to provide an even stronger suite of audio technology and experience solutions, whether home, mobile or auto."
iBiquity has helped drive penetration of HD radio technology in the north American auto market—roughly 35 percent of cars sold in 2014 had HD Radio capability built into them, according to DTS’s statement. The combination of the two companies is expected to provide opportunities for additional geographic, service, and technology expansion.
iBiquity will continue to operate out of its Columbia, Maryland headquarters, and Bob Strudle will continue to lead the company, according to DTS.