DTS (Digital Theater Systems) announced that it has acquired Lowry Digital Images (LDI), a privately held company specializing in image restoration and enhancement. This transaction extends DTS' business to include image technology and services that support content creation and delivery in both the theatrical and consumer markets.
Since its inception in 2000, the Burbank, Calif.-based LDI has processed nearly 100 of the world's most recognized feature films for output to broadcast television, DVD, 35mm film and IMAX presentations.
The acquisition positions DTS to expand its role as an essential technology provider for high-quality audio and video entertainment. By supporting high-definition content creation, delivery and playback, company management believes that it is positioned to participate in and capitalize on the accelerating trend to higher-quality picture and sound delivery for digital cinema, next-generation discs and broadcast. DTS' brand, its leadership position in the theatrical and consumer markets, and its global infrastructure are expected to help bring LDI services and technology to a broader base of customers.
DTS paid approximately $11 million in cash to acquire all outstanding LDI shares. DTS will be required to issue up to 857,000 shares of its common stock to former LDI stockholders in the event LDI meets specified performance criteria during 2005 and 2006. DI is expected to generate revenues of approximately $10 million and be accretive to earnings in 2005.
For more information, please visit www.dtsonline.com.