BREAKING: Premium Audio Company Signs Purchase Agreement to Acquire Onkyo

(June 3, 2020) Premium Audio Company, a subsidiary of VOXX International Corporation, and Sharp have signed an Asset Purchase Agreement to jointly acquire the audio/video business of Onkyo Home Entertainment Corporation. According to VOXX, the purchase price is approximately $30.8 million (plus the assumption of liabilities), pending confirmation by an Onkyo shareholder meeting on June 25th.

Assuming the process is consummated, the VOXX and Sharp joint venture will control Onkyo’s intellectual property, brands, engineering, and manufacturing rights. Ultimately, Premium Audio Company will be responsible for all sales, marketing, and distribution of Onkyo and Integra AV products. At the same time, Sharp will resume manufacturing duties in its Malaysian plants. 11 Trading Company, a subsidiary of Premium Audio Company, will continue to handle distribution in North and South America, and Klipsch will be tasked with distribution in other parts of the world.

As of this time, Pioneer and Pioneer Elite audio/video properties (currently licensed by Onkyo) are not part of the deal, however, all parties have entered into a Memorandum of Understanding to formalize a new agreement.

According to Pat Lavelle, President and CEO of VOXX: “This acquisition is a great addition to our Premium Audio Company. Since we established our distribution relationship in July 2020, we have seen strong demand for both Onkyo and Integra products. Sharp, our partner in this venture, brings world-class manufacturing capabilities and together, with our distribution partners and strong customer relationships, we believe we can grow this business significantly in the years ahead. While we anticipate growth this year as well, should the transaction be approved, it will take time to ramp up manufacturing lines and secure parts, which is a challenge for the industry at large. With that said, we believe over the coming years, we will restore worldwide sales resulting in strong top-line growth and improved profitability.”

AV NIRVANA will update this story as new details become available.

 

[Priyantha]

mmmm That Pioneer is not part of this deal sounds a bit strange right?

 

[Todd Anderson]

It will be negotiated... I can’t remember the details of the Onkyo/Pioneer deal, but it looks like they licensed the brand. That must require separate legal avenues.

*Was actually just informed, that's exactly what the situation is... VOXX/Sharp are/will negotiate directly with Pioneer for licensing rights.

 

[Sonnie]

During all of the design and release of the new models?

Maybe that was the reason for it.

 

[Todd Anderson]

I'm not under the impression that Onkyo's financial collapse was assumed, but who knows. Perhaps this was in the works. I don't think we'll ever know the answer to that. Honestly, tho, this puts Onkyo and Pioneer in safe hands, backed by a large company with funds and interest pushing it forward.

 

[Sonnie]

I'm not under the impression that Onkyo's financial collapse was assumed, but who knows. Perhaps this was in the works. I don't think we'll ever know the answer to that. Honestly, tho, this puts Onkyo and Pioneer in safe hands, backed by a large company with funds and interest pushing it forward.

Yep... should be good to go now. I'm guessing those that managed to stay on with those brands are happy about right now.

 

[Todd Anderson]

I bet. I'm big fan of Sound United, but I think the market is more interesting with VOXX taking control of Onkyo/Pioneer. The product managers (here in the US) are really jazzed about the gear... I think a lot of people are expecting great things. Would be nice if it all comes to fruition.

 

[Shepherd]

" While we anticipate growth this year as well, should the transaction be approved, it will take time to ramp up manufacturing lines and secure parts, which is a challenge for the industry at large. With that said, we believe over the coming years, we will restore worldwide sales resulting in strong top-line growth and improved profitability.”

This quote scares me a little as it seems holding out for something this summer might not be a reality if they still haven't secured enough parts.

 

[Todd Anderson]

" While we anticipate growth this year as well, should the transaction be approved, it will take time to ramp up manufacturing lines and secure parts, which is a challenge for the industry at large. With that said, we believe over the coming years, we will restore worldwide sales resulting in strong top-line growth and improved profitability.”

This quote scares me a little as it seems holding out for something this summer might not be a reality if they still haven't secured enough parts.

They still are aiming for their timeline, but I believe every manufacturer is seeing difficulties at the moment.

 

[Mike Rivers]

Any chance that they might see the value in making a new cassette deck? I'm hoping for a playback-only but high quality transport and decent electronics. I want another deck for "archival" playback but the price of TASCAM 122s has totally gone through the roof.

 

[Todd Anderson]

I doubt it. I think you're probably stuck with the TASCAM. I guess you can always keep your eyes open for a vintage deal.

 

[Flak]

It's time to put Google Translate to work,
here a press release from Onkyo dated... today June 8

https://onkyo.com/news/images/PR_20210608_OnkyoAVReceiver_Klipsh%20Optimized%20mode.pdf

 

[Priyantha]

It does work via translate google com
Because of the fact I do not have 10 posts yet I am unable to post the full URL, But I can read it via Google Translate

 

[Priyantha]

Page 1​

1
Press material
June 8, 2021
Onkyo AV receiver matched to Klipsch brand speaker characteristics
Equipped with "Klipsch Optimized Mode" function by software update
Onkyo Home Entertainment Co., Ltd. (Location: Higashi-Osaka City, Osaka Prefecture, Representative Director), an operating company of the Onkyo Group
President: Munenori Ohtsuki) teamed up with the Klipsch brand speaker "Reference Series" at Onkyo's AV receiver.
A software update will include a "Klipsch Optimized Mode" function that sets the optimum sound field when combined.
I will inform you. This function started from "TX-NR696" and is scheduled to be released this summer. 2021 new product Onkyo
We will also support land AV receivers.
■ What is Klipsch Optimized Mode?
Our AV receiver tunes the optimum viewing environment according to the speaker and room environment, and reproduces the ideal "sound".
It is equipped with an automatic sound field correction technology that enables. (Onkyo brand AccuEQ, and AV Les scheduled to be released this summer
(Dirac Live TM is newly installed from the sea bar ) Also, the AV receiver is output from the speaker system including the subwoofer.
Equipped with a function called "base management" that outputs the low frequencies to a subwoofer or main speaker with higher low frequency reproduction capability.
We are here. The crossover frequency that determines the playback frequency band of base management can also be set by the automatic sound field correction function.
However, some errors may be included due to environmental factors at the time of measurement.
This time, we conducted a joint study with Klipsch and matched the design concept of the Klipsch brand speaker "Reference Series".
We will realize the sound field setting and install it as "Klipsch Optimized Mode" .
This mode can also be combined with the automatic sound field correction technology described above. The automatic sound field correction has already been performed and the crossover circumference
Customers who set the wave number and those who do not set it from the setting menu added after the software update
By simply specifying the model number of the Reference series, the crossover frequency becomes an ideal value instead of an estimated value, and the speaker system
The low-frequency reproduction capability can be maximized, and reproduction that matches the design concept of Klipsch speakers is possible.

Page 2​

2
UI screen for selecting speaker combination for AV receiver
UI screen for AV receiver crossover settings
Klipsch Optimized Mode will be included in our new AV receiver products in the future, and will be included in Klipsch.
When new products in the Reference series are released, we plan to add additional support through updates.
We will strengthen our relationship with Klipsch to provide the "best entertainment at home" provided by AV receivers.
I will aim for.
■ Compatible models
Onkyo
TX-NR696 (Updated on June 8)
* URL REMOVED
TX-RZ50 (new product scheduled to be released in the summer of 2021)
TX-NR6100 (new product scheduled to be released in the summer of 2021)
INTEGRA
DRX-3.4 (new product scheduled to be released in the summer of 2021)

Page 3​

3
■ About the Klipsch Speaker Reference Series
The Reference series has gained tremendous support in the United States since it was first launched in 1999.
Klipsch own Tractrix ® (Torakutorikusu) horn and new linear travel suspension (LTS) Tweeter, Tractrix ® (Tiger
Equipped with a port, etc., it provides a high-quality music experience. From 2020, we will be a Klipsch brand spy
-We sell cars.
Reference URL
● Klipsch Reference Series: * URL REMOVED
● Klipsch brand speakers land, 10 new Reference series speaker systems released
* URL REMOVED

● What is Onkyo's “upper home entertainment”? Introducing the new AV receiver for 2021 ① Sound
About the place ~
* URL REMOVED
*
"Klipsch" is a trademark of Klipsch Group, Inc. and is used under license.
* Other product names, technical names, function marks, company names, etc. in the text are trademarks or registered trademarks of the Company or other companies.

 

[Shepherd]

"TX-RZ50 (new product scheduled to be released in the summer of 2021)
TX-NR6100 (new product scheduled to be released in the summer of 2021)
INTEGRA
DRX-3.4 (new product scheduled to be released in the summer of 2021)
"

It looks like they still expect to release some new models this summer. Hopefully sites start taking preorders soon.

 

[Flak]

It looks like the new Onkyo models can be ordered for delivery next month:

https://www.2001audiovideo.com/en/catalog/771-home-audio/15-receivers-and-amplifiers/b137-onkyo#tophead

 

[Shepherd]

It looks like the new Onkyo models can be ordered for delivery next month:

That site has the RZ50 for $1600 USD/ $2000 CAD!? Seems it's marked up $500 USD over MSRP.

 

[Flak]

My mistake...deleted

 

[Todd Anderson]

HDTVTest (YouTube) one of the original reviewers to discover last year's HDMI 2.1 bug, has successfully reviewed an Onkyo TX-RZ50, which easily passed an Xbox Series X game at 4K/120Hz with HDR. Looks like Onkyo is the first to prove a fully functional HDMI 2.1 AVR.

 

[jsil36]

Nice can't wait to get my hands on one of these. Can find out if they will be able to do Dirc live bass management thanks.

 

[Shepherd]

Anyone know If the Voxx / Onkyo deal was completed today? I didn't see anything on their webpage

 

[Flak]

Anyone know If the Voxx / Onkyo deal was completed today? I didn't see anything on their webpage

Yes, the business transfer of the Onkyo’s Home Entertainment Division to Voxx International has been approved yesterday by the shareholders

 

[Flak]

 

[Flak]

Net sales of approximately $50.0 million, with upside thereafter, are anticipated in fiscal 2022 and VOXX International has entered into a new licensing agreement with Pioneer Corporation:

VOXX International Corporation's Subsidiary, Premium Audio Company, LLC, Enters Into Joint Venture Agreement With Sharp Corporation; Joint Venture To Acquire The Audio/Video Business Of Onkyo Home Entertainment Corporation : VOXX International

The Investor Relations website contains information about VOXX International's business for stockholders, potential investors, and financial analysts.

investors.voxxintl.com

 

[Todd Anderson]

It's Official: Onkyo's Acquisition Gets Approval, Pioneer is Back in the Fold

(June 29, 2021) Yesterday, VOXX International Corporation announced two exciting pieces of news, both of which promise home theater and audio fanatics an exciting and competitive marketplace for years to come. First on the docket is confirmation of a pending joint acquisition proposal by...

www.avnirvana.com