VOXX International Corporation (NASDAQ: VOXX), a manufacturer and distributor of automotive and consumer technologies for the global markets, has signed a letter of intent to acquire the home AV business of Onkyo Home Entertainment Corporation, with Sharp Corporation acting as its partner in the business venture. As it stands, VOXX and Sharp would acquire the Integra, Pioneer, Pioneer Elite, and Onkyo USA brands from parent company Onkyo Home Entertainment.
According to a recent press release, VOXX and Sharp have been granted exclusivity while discussions remain underway. The two companies have also entered into a binding agreement to move forward with this proposed transaction. All companies have a strong working relationship and are moving towards reaching a definitive agreement by May 20, 2021. If an agreement is reached, it will be presented to Onkyo shareholders at its Ordinary General Meeting of Shareholders scheduled on June 25, 2021.
This news follows on the heels of a deal involving the companies back in July 2020 that helped establish a good working relationship between the parties. At that time, VOXX, through its distribution company and subsidiary 11 Trading Company LLC, became the exclusive distributor in the Americas of the Onkyo, Pioneer, Pioneer Elite, and Integra brands. This, in turn, built upon and expanded the alliance between the company’s when Onkyo became the distributor of Klipsch premium audio sound solutions in Japan in 2019.
More recently, 11 Trading Company became the exclusive distribution partner of the Teac and Eso11 Trading Company to Distribute Teac, Esotericteric brands. In addition, Sharp Corporation has manufactured products for Onkyo at their Malaysian factory as part of a joint venture for many years.