DTS Buys iBiquity Digital

Company has entered into a definitive agreement to acquire HD Radio developer for approximately $172 million
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CALABASAS, Calif.�DTS, Inc. today announced it has entered into a definitive agreement to acquire iBiquity Digital Corp., the developer of HD Radio technology for AM/FM audio and data broadcasting, for approximately $172 million. DTS expects to finance the transaction through a combination of cash on hand and debt. �

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�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 a DTS�news releaseabout the deal. �In particular, iBiquity has very 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.�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. The combination is also expected to provide opportunities for additional geographic, service and technology expansion.�

"We are excited to join forces with DTS, a true pioneer in high definition audio," said Bob Struble, president and CEO of iBiquity.�"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."�

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