Harman acquires B&O in deal worth over Rs 990 crores.

US-based infotainment supplier Harman Industrial Industries Inc. (HII) has announced its acquisition of Bang & Olufsen Automotive.

The deal, reportedly amounting to over Rs 990 crores, was first made public in March, and Harman had said that the amount paid would include all license fees.

Harman is also be expected to pay an annual fees of approximately  Rs 11.62 crore, for exclusive use of Bang & Olufsen and B&O Play stereo technology. The US based company has 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 offerings.

Harman Kardon is credited with creating the high-fidelity audio system market. The US based company owns a variety of brands like AKG, JBL, Mark Levinson and Infinity. B&O’s portfolio boasts automotive clients like Audi, Mercedes-Benz, Aston-Martin and BMW.

This deal means that Harman gains the luxury client list and B&O gets to retain its brand name and sound systems.

Source: Autocar India