NEW YORK (AP) - The audio and electronic systems company Harman International Industries Inc. will buy Bang & Olufsen Automotive for about $157.3 million.
NEW YORK (AP) — The audio and electronic systems company Harman International Industries Inc. will buy Bang & Olufsen Automotive for about $157.3 million.
Bang & Olufsen makes sound systems, which are available in high-end luxury cars including Audi, Aston Martin, BMW and Mercedes-Benz car models. Stamford, Connecticut-based Harman brands are in more than 25 million cars and include AKG, Harman/Kardon, Infinity, JBL, Logic 7, Mark Levinson, Lexicon, Revel, Selenium, and yurbuds.
In January, Harman reported-better-than-expected quarterly financial results as it continues to benefit from an industry trend toward cars that provide users with Internet-connected audio and entertainment options. The company expects demand will remain strong and forecast profit of $5.85 per share for the fiscal year through June on revenue of $6 billion.
The Bang & Olufsen deal includes a purchase price of 145 million euros, or about $157.3 million, as well as license payments for an exclusive license to the Bang & Olufsen and B&O PLAY brands within the automotive industry.
"Bang & Olufsen is a distinctive brand that will complement our existing premium branded offerings and strengthen HARMAN's position in this segment," said Harman President and CEO Dinesh C. Paliwal, in a statement.
Harman will assume all Bang & Olufsen Automotive customer programs, and all Bang & Olufsen Automotive development and production resources will be transferred to Harman.