StereoNET understands discussions have been taking place for some time. The news comes on the heels of senior executives leaving QualiFi to join a new subsidiary of Klipsch that is saaid to be setting up direct operations in Australia.

It is also understood that Sound United has pulled both Polk Audio and Definitive Technology back into its stable after being distributed by other wholesalers in Australia.

Kazuma Okada, VP of commercial operations for Asia Pacific at Sound United, told StereoNET:

Australia is a key strategic market for Sound United and we determined the best way to continue supporting our existing partners would be to establish direct operations in the country,

Okada continued:

QualiFi has established itself as a leader in sales, marketing and support for several AV suppliers, including Sound United with brands like Denon, Marantz and Heos. Given its stellar reputation and robust capabilities in the Australian market, we believe acquiring QualiFi will result in a superior service to our AV dealers and the market at large. We look forward to the opportunity to finalize this transaction.

While the proposed transaction, according to a press release obtained by StereoNET, "remains subject to definitive agreements, confirmatory diligence, regulatory approvals, and other required consents", it is understood the agreement has now been signed.

Michael Henriksen, Managing Director of QualiFi commented:

It's been an honor to service the Australian market for nearly four decades, and I'm excited to embark on QualiFi's next chapter with Sound United. The AV market is on an incredible growth trajectory right now, and with the help of Sound United, we're confident QualiFi will continue to meet and exceed the expectations of our dealers and partners.

Sound United already has an official Australian subsidiary based in Sydney with Bowers & Wilkins Australia, so the announcement poses more questions than answers. For example, will the Sydney office still represent Bowers & Wilkins along with its Sydney-based external logistics. Or will this operation move to QualiFi's expansive Melbourne operations? Which brands will be represented and distributed by which company, and which location?

StereoNET has contact the concerned parties involved and asked for further clarification.