Pioneer and Onkyo Unite
In a press release, Pioneer have announced they have entered discussions to sell the wholly-owned subsidiary, Pioneer Home Electronics Corporation (PHE) to Japanese competitor Onkyo, and Baring Private Equity Asia.
Baring will hold a 51% stake in PHE, with the ownership of the remaining 49% to be determined between related parties.
Pioneer announced recently their plans to exit the home AV market, citing a changing market as the AV industry shifts from analogue to digital products, and the increasing consumer demand for wireless and streaming services.
Pioneer have recognised their strength as a leader in the car audio market, accounting for more than 70% of total revenue, with audio-visual and home electronics generating just one fifth of it's revenue.
“Pioneer and Onkyo will make an effort to increase competitiveness by capitalizing on the resources of the two companies such as strong brand power and superior technologies. Also, the capital participation of Baring will maximize synergies including business expansion.
Both companies will retain their existing brands, and increase their corporate value.”
According to a Tokyo-based spokesman for Baring, the three parties aim to close the deal by the end of August.
StereoNET spoke to Pioneer Electronics Australia who declined to comment at this stage due to ongoing discussions.