Taiwan's Innolux unit buys former Japanese TV major Pioneer for $1.1 billion
TAIPEI, June 26 (Reuters) - CarUX, a smart cockpit solutions provider and a subsidiary of Taiwan's display maker Innolux Corp (3481.TW), opens new tab, said on Thursday it will acquire Japan's Pioneer Corporation in a deal valued at 163.6 billion yen (around $1.1 billion).
Pioneer was once a major Japanese player in consumer electronics, whose decline presaged the broader industry shake-up to come as Japanese manufacturers were unable to keep with larger, more efficient producers like South Korea's Samsung Electronics (005930.KS), opens new tab.
CarUX said it has signed a definitive agreement with EQT, a global investment firm, to acquire a 100% stake in the Japanese electronics company.
The deal is expected to increase CarUX's presence in the Asia-Pacific region and broaden its global product portfolio by combining its display and touch technology expertise with Pioneer's strengths in automotive sound system and Human Machine Interface (HMI) software development, the company said in a statement.
"This acquisition brings strategic synergies for both CarUX and Pioneer," Innolux and CarUX Chairman Jim Hung said in a statement.
CarUX said in March that it is planning a listing in the United States.
Pioneer has long-standing partnerships with major Japanese and global automakers, including Toyota (7203.T), opens new tab.
Its president and CEO, Shiro Yahara, said it looks forward to collaborating with CarUX to "create the future of mobility experiences".
Hung added at a press conference that Pioneer generated revenue of 240 billion yen in the fiscal year ending March 2024 and maintains a healthy financial structure, which is one of the key factors enabling the deal.
Pioneer launched the world's first plasma TV in 1997 and briefly found success in the high-end segment.
Pioneer was acquired in 2018 by Baring Private Equity Asia in a deal for $900 million, leading to its delisting from the Tokyo Stock Exchange. Baring was later acquired by Sweden-based EQT AB in 2022.
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