DTS announced that it will acquire iBiquity for a price of about $172 million. iBiquity is the exclusive developer and licensor of HD Radio technology, while DTS is a provider of high-definition audio solutions. Bob Struble, president and CEO of iBiquity, will continue to lead the HD Radio business following the acquisition. The deal is expected to close later this year.
“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,” Struble said. “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.”
HD radio has been seeing business growth in the U.S. in recent months. iBiquity has forged partnerships among car makers and content providers that could make the technology an increasingly attractive package for both the industry and consumers. DTS has not specified yet what its strategy will be for HD radio or if anything more will change besides the company name attached to future developments.