Digital Theater Systems, Inc., has acquired Burbank-based Lowry Digital Images, a privately held image restoration and enhancement company. DTS, based in Agoura Hills, paid approximately $11.0 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. LDI is expected to generate revenues of approximately $10 million which will be added to DTS’ earnings in 2005. The acquisition will allow DTS to extend its business to include image technology and services that support content creation and delivery in both the theatrical and consumer markets. DTS is a digital technology company that produces consumer electronics products found in home theater, car audio, PC and game console products, as well as 5.1 music discs, DVD-video, DVD-audio and DVD-ROM software.
