Sound United LLC, parent company to Denon, Polk Audio, Marantz, Definitive Technology, HEOS, Classé, and Boston Acoustics, today announced that it has entered into a term sheet agreement to acquire Onkyo Corporation’s consumer audio division, including the Onkyo, Pioneer, Pioneer Elite, and Integra brands.

The preliminary agreement enables both companies to proceed with negotiations of definitive terms and agreements quickly.

Kevin Duffy, the current CEO for Sound United, will be CEO of the newly combined businesses and he told StereoNET:

We are thrilled by the opportunity to add the venerable Onkyo and Pioneer brands to our portfolio. Sound United is one of the leading dedicated providers of premium audio/video products, and we believe the combined businesses will bring unrivalled innovation and sound performance to our consumers and channel partners. Upon completion of the transaction, we will work tirelessly with the consumer audio division of Onkyo Corporation to ensure a seamless transition into the Sound United family so that all employees, customers and channel partners benefit from the enhanced breadth and depth of the new organisation.

In March of 2015, Onkyo acquired Pioneer’s Home AV business bringing together two audio powerhouses and resulting in significant productivity increases, which not only strengthened profitability it resulted in a new class of mobile devices such as headphones, Digital Audio Players and smartphones.

Meanwhile with Denon, Polk Audio, Marantz, Definitive Technology, HEOS, Classé, and Boston Acoustics under its umbrella, Sound United has a deep line-up to meet various user needs and a robust global offering of products and brands. They maintain a strong position with premium brands that stems from their investments in technology and high-quality product offerings.

This expanded scope will also offer manufacturing efficiencies, expedited development cycles and a combined business better positioned to invest in the future of the premium audio category.

Onkyo Corporation will retain the rights to the Pioneer and Onkyo brands for their Digital Life and Embedded Audio businesses.

As part of the planned acquisition, Sound United will be acquiring all worldwide third-party distribution agreements under which the premium audio products are currently sold. Current distribution by Onkyo USA in the Americas and Aqipa in Europe will be unaffected by this transaction. 

The completion of the transaction is subject to various normal-course conditions precedent, including, but not limited to, execution of the Definitive Agreement, the completion of satisfactory due diligence, committed financing, and approvals from regulators and the Onkyo Corporation’s shareholders at the Annual General Meeting, expected to be held on or about June 26, 2019.