US-based infotainment supplier Harman Industrial Industries Inc. (HII) has announced its acquisition of Bang & Olufsen Automotive.
The deal amounting to USD 156 million (approximately Rs 995 crore), was first announced in March, and Harman said that the amount to be paid would include the unit and technology license fees.
Harman will also be expected to pay annual fees of at least USD 1.82 million (approximately Rs 11.62 crores), for exclusive use of Bang & Olufsen and B&O Play stereo technology in car audio systems for over 20 years. Harman said that it will market the B&O products to makers of high-end cars and target the B&O Play to the mass luxury market.
Harman Kardon is credited with creating the high-fidelity audio system market. Harman owns a variety of brands like AKG, JBL, Mark Levinson and Infinity. Bang & Olufsen portfolio boasts important automotive clients like Audi, Mercedes-Benz, Aston-Martin and BMW.
This deal means that Harman gains the luxury client list and Bang & Olufsen gets to retain its brand name and sound systems.