Harman is gobbling up one of Bang & Olufsen's main businesses.
The audio and electronic systems company has announced it will buy the Bang & Olufsen automotive unit for about €145 million (converts to £106 million). Bang & Olufsen, which is known for its premium audio products, makes sound systems meant to complement luxury cars like Aston Martin and Mercedes-Benz.
Connecticut-based Harman is similar in that it makes audio products for cars as well, but now it wants to expand its current offering to include the Bang & Olufsen brand. The company is promising to "rapidly grow" Bang & Olufsen Play-branded solutions, as the buyout deal includes an exclusive license to the Bang & Olufsen and Play brands.
"Bang & Olufsen is a distinctive brand that will complement our existing premium branded offerings and strengthen HARMAN's position in this segment," said Dinesh C. Paliwal, Harman President and CEO, in a statement.
The agreement remains subject to regulatory approvals, but when officially cleared, Harman is expected to also assume the Danish company's automotive customer programs, as well as development and production resources.