Harman International Industries, will acquire AMX LLC for only US$365 million.
We told you in December that The Duchossois Group, Inc. would be unloading more assets (after the Milestone deal) and we told you AMX was a possibility.
The shocker here is the buyer, Harman, an infotainment and audio group.
And the price. That's right. No stock, no other sweeties...just cash. That implies to us that AMX was struggling with margins and profitability. Or maybe just lower sales volumes than previously thought. Companies are generally bought and sold on either multiples of profit (3-8X earnings) or 1X (sales volume).
AMX will be integrated into HARMAN's Professional division, whose professional audio and lighting business features legendary brands like AKG Acoustics, BSS Audio, Crown amplifiers, dbx, JBL Professional, Lexicon, Soundcraft, Studer and Martin lighting.
"Starting with the acquisition of Martin lighting last year, HARMAN has set forth a clear strategy to add visual solutions to our legacy of audio offerings" says Blake Augsburger, President, Harman Professional division. "AMX's strong portfolio of video distribution hardware and software is a significant step into the video domain, reinforcing Harman's commitment to expand our professional portfolio with industry-leading technologies and brands in adjacent and complementary markets."
And that sums of the point of why AMX has found a good home: audio and telematics pioneer Harman wants to expand to provide complete audio, video, lighting and automation solutions to their customers globally.
Let's end this news with two more predictions: Harman will soon acquire more brands to complete its corporate mission to widen to its offering; and The Duchossois Group, Inc. will divest more to move to its new vision as an investment group.
