Terms of the deal to create Ibiquity Digital Corp. were not disclosed. The partners said the merger was embraced by the National Radio Systems Committee, which is overseeing industry development of a U.S. digital radio specification.

The deal was made as satellite-based digital radio developers gear up their operations in preparation for the launch of services next year. XM Satellite Radio Inc. this week announced additional investments totaling $235 million. Its chief rival, Sirius Satellite Radio, launched the first of three satellites on June 30. The company's other two satellites are scheduled to be in orbit by November.