Published on October 4th, 2019 | by The GC Team0
Sound United terminates agreement to acquire Onkyo Corporation
Sound United has announced the “mutually agreed” termination of an agreement made in May this year to acquire Onkyo Corporation’s Home Audio business.
At that time the two companies said the preliminary agreement would enable them to quickly proceed with negotiations of definitive terms and agreements, but the completion of the transaction was subject to several conditions, including the finalisation of all definitive agreements, completion of satisfactory due diligence, securing of committed financing and various other required approvals, all of which cannot be achieved by the agreement’s expiry date of 30th November this year.
A statement released today said: “The impact on Onkyo’s consolidated financial results for the fiscal year ending March 31, 2020 due to the events leading up to and the termination of this Transfer is currently being evaluated and will be disclosed as soon as it becomes clear.
“In order to further invest in its business and reinforce the group’s overall financial health Onkyo is actively raising new financing, considering new alliances and making long-planned internal changes, which were put on hold for this Transfer, to improve its profitability and competiveness.”
Onkyo said it still believes in the value of combining these businesses and will remain open to future discussions should conditions change, but for now it has determined that it is time for the organisation to return to dedicating its attention and resources to running its Home AV business independently.