Photo: Catalin Garmacea
In a surprising, swift move, US-based audio company Harman International Industries purchased the automotive branch of Bang & Olufsen. The move was made official by the CEO of Bang & Olufsen, Mr. Ole. G. Andersen via a statement.
The transaction between the two companies will allow Harman Kardon to use the technology and licenses (as well as the name) of Bang & Olufsen but only on cars. The consumer electronics division will not be changed in any way, the Danish company sticking to its trademark products.
The deal will cost the American-based company $156 million (€145 million) which seems like a bargain keeping in mind just how expensive the B&O system is on luxury cars. Furthermore, the payment will be made over 20 years, in yearly payments of $1.82 million.
At the same time, the Danish company that is also involved in the medical tech field will be selling this branch as well, Medicom. Their ICEpower amplifier unit is also being discussed, eyed for a similar move in the near future, leaving the Bang & Olufsen name to focus only on consumer electronics.
With this move, Harman International will now be making car audio systems under eight different names: Bang & Olufsen, Bowers & Wilkins, Harman Kardon, Infinity, JBL, Lexicon, Mark Levinson and Revel. Furthermore, their business will cover manufacturers like BMW, Audi, Aston Martin and Mercedes-Benz.
As a matter of fact, we told you a while back that BMW will be dropping the Harman Kardon sound system in favor of Bowers & Wilkins on the new 7 Series. At the same time, the top of the line and the most expensive option will probably remain Bang & Olufsen, no matter who owns the name.
"The transaction enables Bang & Olufsen to focus and strengthen consumer business and reduce operational complexity. Harman's position as the market leader in audio and infotainment solutions in the automotive market will be combined with the strengths of the Bang & Olufsen brand. Therefore we believe the transaction holds significant benefit for our Automotive customers, Harman's customers as well as for both companies," said B&O CEO Tue Mantoni.
Check out the attached pdf for complete the press release issued by Bang & Olufsen regarding the move.
The deal will cost the American-based company $156 million (€145 million) which seems like a bargain keeping in mind just how expensive the B&O system is on luxury cars. Furthermore, the payment will be made over 20 years, in yearly payments of $1.82 million.
At the same time, the Danish company that is also involved in the medical tech field will be selling this branch as well, Medicom. Their ICEpower amplifier unit is also being discussed, eyed for a similar move in the near future, leaving the Bang & Olufsen name to focus only on consumer electronics.
With this move, Harman International will now be making car audio systems under eight different names: Bang & Olufsen, Bowers & Wilkins, Harman Kardon, Infinity, JBL, Lexicon, Mark Levinson and Revel. Furthermore, their business will cover manufacturers like BMW, Audi, Aston Martin and Mercedes-Benz.
As a matter of fact, we told you a while back that BMW will be dropping the Harman Kardon sound system in favor of Bowers & Wilkins on the new 7 Series. At the same time, the top of the line and the most expensive option will probably remain Bang & Olufsen, no matter who owns the name.
"The transaction enables Bang & Olufsen to focus and strengthen consumer business and reduce operational complexity. Harman's position as the market leader in audio and infotainment solutions in the automotive market will be combined with the strengths of the Bang & Olufsen brand. Therefore we believe the transaction holds significant benefit for our Automotive customers, Harman's customers as well as for both companies," said B&O CEO Tue Mantoni.
Check out the attached pdf for complete the press release issued by Bang & Olufsen regarding the move.
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