Harman Kardon acquires Bang & Olufsen Automotive

Interesting, Others | April 1st, 2015 by 3
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Harman Kardon, the maker of in-car multimedia systems, acquires the Bang & Olufsen Automotive to give the U.S.-based company a dominant position in the car …

Harman Kardon, the maker of in-car multimedia systems, acquires the Bang & Olufsen Automotive to give the U.S.-based company a dominant position in the car audio systems business.

For €145 million ($156 million), Harman Kardon is purchasing Bang & Olufsen’s automotive business including licenses for the use of the brands connected to the Danish company. The purchase doesn’t include Bang & Olufsen’s consumer-electronics business.

B&O currently offers luxury audio systems for BMW, Audi, Aston Martin and Mercedes-Benz. After the acquisition, the Harman Kardon business would include Bang & Olufsen, Bowers & Wilkins, Harman Kardon, Infinity, JBL, Lexicon, Mark Levinson and Revel brands, and can be found as standard and optional equipment in some 25 million cars.

2012 BMW 6 Series Gran Coupe Bang and Olufsen High End Surround Sound System 1920x1440 750x563

In the 2015 BMW 760Li, the Bang & Olufsen Sound System retails for $3,700. Many B&O systems, which often are upgradable options, run $6,000 or more. For the next generation 7 Series, BMW will use the Bowers & Wilkins brand.

READ ALSO: Harman Kardon Factory Tour

“From the marketing, scale and technologies Harman will bring to the business, we will strengthen and grow the Bang & Olufsen and B&O PLAY automotive audio brands and, importantly, further improve profitability, which is now in line with our existing car audio business,” said Chief Executive Dinesh Paliwal in a statement.

This purchase follows up a $950 million investment into two different software firms earlier this year by Harman, which is building up its position to provide programming and hardware for the screens inside of automobiles.

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