Harman Buys Bang & Olufsen’s Automotive Audio Business for $156M
Announced in March of 2015, Harman International Industries
is poised to purchase Bang & Olufsen’s automotive sound-system business. Harman is the US maker of JBL audio equipment. An offer of $156 million USD was made to Bang & Olufsen to purchase B&O’s automotive business as well as the technology license fees. When the offer was made B&O’s stock jumped the most it has jumped in almost 25 years. Stock surged nearly 40 percent to 70 kroner, representing the largest intraday increase since April 1990.Bang & Olufsen will retain its brand and B&O PLAY for their consumer sound products. In the third quarter of 2014, the automotive division of Bang & Olufsen only made $5 million USD.
Harman will pay nearly $2 million a year for the exclusive use of B&O’s stereo technology in vehicle sound systems over 20 years. With this deal, Harman will gain major automotive manufacturers BMW, Volkswagen, and Mercedes-Benz as clients. Harman audio products are already present in more than 25 million automobiles on the road. The purchase of Bang & Olufsen’s auto division follows up a $950 million investment into two separate software firms earlier this year. Harman is building up its position to provide programming and hardware for the screens inside of automobiles. Harman employs roughly 17,600 people throughout the Americas, Europe, and Asia. Reported annual revenue in 2014 was $5.9 billion USD. Via our proprietary website Just NSN Parts, ASAP Semiconductor
is a leading supplier of Bang & Olufsen products
. Prospective customers can browse our inclusive inventory of hard-to-find obsolete and current Bang & Olufsen parts at www.justnsnparts.com
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Posted on April 8, 2015
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