In a recent announcement, VOXX International Corporation, a manufacturer and supplier of automotive, consumer electronics, and premium audio products, has made public a definitive agreement to sell Hirschmann Car Communication and its worldwide subsidiaries to a subsidiary of TE Connectivity.
Under the terms of the Stock Purchase Agreement, TE will acquire Hirschmann for an enterprise value of about $166 million. The final purchase price is subject to further net cash and working capital adjustments. VOXX is the selling entity in this transaction.
VOXX International Corporation will continue to operate in the Automotive industry and will retain its ongoing OEM business that is not part of this transaction through VOXXHirschmann Corporation. The company will also continue its Automotive Aftermarket business through its proprietary brands and third-party distribution agreements. The continuing operations include the company's rear-seat infotainment solutions, car security and remote start systems, remote start modules, app-based vehicle security solutions, keyless entry products and the eFob satellite radio products.
Business lines that will be sold as part of this agreement include Hirschmann's antenna, smart antenna, multi-digital tuner and commercial asset tracking business, which incorporates various technologies and product lines. Under the terms of the agreement, VOXX International will phase out the VOXXHirschmann name over a period of two years.
“I would like to thank the Hirschmann employees for their unwavering commitment to innovation and their positive contribution to VOXX International,” said Pat Lavelle, President and CEO, VOXX. “The passion they have displayed in driving and developing technology-advanced products for OEM customers has been exceptional. We believe with the additional resources that TE Connectivity brings to Hirschmann, the business will have the ability to grow faster and garner a bigger share within their core product lines.”
This transaction is subject to regulatory approval and customary closing conditions. The expected close, subject to approvals, is anticipated to be on August 31, 2017. Wells Fargo Securities is acting as exclusive financial advisor to VOXX International on the transaction.
“The proposed acquisition of Hirschmann further expands our product portfolio and the integrated, highly engineered solutions we provide for connected and autonomous vehicles worldwide,” said Eric Kueppers, President, Global Automotive business, TE. “Increasing data needs and new applications require active communications and increased connectivity within and outside the vehicle. Combining Hirschmann's leading antenna technology with TE's sensing and connecting capabilities allows us to expand our offerings, providing customers with value-add, holistic end-to-end data connectivity solutions.”
Edited by
Alicia Young
