A New Hope For Onkyo with VOXX International Corporation?
Has Onkyo found a new home with the likes of Klipsch, Magnat, Heco, and Jamo at VOXX International Corporation?
Now a new player has joined the story in the shape of VOXX, a leading global manufacturer and distributor of automotive and consumer technologies. Earlier this week, VOXX announced that it has signed a letter of intent to acquire the Home Audio/Video business of Onkyo Home Entertainment Corporation with Sharp Corporation as its partner. We are told that VOXX and Sharp have been granted exclusivity while discussions remain underway.
VOXX and Sharp have also entered into a binding agreement to move forward with this proposed transaction. In the official statement, it is underlined that all the companies have a strong working relationship. For instance, in July 2020, VOXX, through its newly formed distribution company and subsidiary 11 Trading Company, became the exclusive distributor of the Onkyo, Pioneer, Pioneer Elite, and Integra brands in the Americas. This built upon and expanded the alliance between the companies when Onkyo became the distributor of Klipsch premium audio sound solutions in Japan in 2019. For many years, Sharp Corporation has manufactured products for Onkyo at their Malaysian factory as part of a joint venture
Pat Lavelle, President and CEO of VOXX International Corporation, told StereoNET:
For the past two years, we've worked well with the Onkyo team, expanding our relationship, and most important, serving the needs of our customers. It is our hope that we can reach an agreement shortly as they have strong brands, and through our Premium Audio Group, led by the Klipsch management team, we have widespread distribution and a global infrastructure to support our growth.
Presently, the companies are moving towards reaching a definitive agreement by May 20th 2021. Looking to the future, and if an agreement is reached, it will be presented to Onkyo shareholders at its Ordinary General Meeting of Shareholders scheduled for June 25th 2021.
Needless to say that StereoNET is keeping an eye on this development as it evolves.
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