Strategy in TECH...
Tech Data, one of the largest technology distributors in the U.S. and globally, has been acquired by Apollo Global Management, a private equity powerhouse, in a deal valued at $5.4 billion. The deal announced today, is expected to close by mid-2020.
Toshiba Corp. announced this week that it has launched a large consortium of more than 100 companies in Japan for the purpose of creating new services and products to attack and drive the growth of the Internet of Things (IoT) market. Consortium participants are companies of varying size and capabilities that cover the entire spectrum of the market.
With almost two years away from the market after their acquisition by Sound United in January 2018, Classé says it will return to the audiophile electronics market in January 2020 with the launch of their new even more upscale Delta Series line consisting of two new amplifiers and one new preamplifier/DAC. But after so long away, what will it take for the company to re-establish the brand?
Korean media is reporting that Sharp, the former Japanese powerhouse brand now owned by Taiwan’s Foxconn, is late on approximately tens or even hundreds of millions of dollars worth of payments to Korean factory gear makers. Not only are they late, but they are said to be demanding even more discounts on the outstanding debt owed to multiple South Korean suppliers of factory equipment destined for use in LCD production factories. All of this is being done in violation of covenants in their purchase contracts with these suppliers.
This dispute may raise to level of government intervention.
After receiving a stipulation allowing them more time to respond, Lenbrook Industries Ltd, and Lenbrook America, last week filed their response to the Sonos patent litigation they were hit with in June. It was a robust and smart response that clearly communicated that Lenbrook planned to give no ground in this dispute.
While perhaps not quite as audacious as the D&M response when they were first dealt the blow of litigation…Lenbrook offered a smart and savvy response that not only pushed back but seemingly undercuts many of Sonos’ core allegations..and patents.
Melrose Industries PLC, a U.K. based investment group that purchased Nortek, Inc. back in 2016, released their fiscal 2019 first half financial results last month (for the period ending June 30, 2019). And while the results showed strong sales growth (thanks to a large acquisition) the company still booked a net loss.
Perhaps more interesting, was that Nortek’s Security & Smart Technology unit figured quite prominently in the document – often for the wrong reasons.
As you most likely know by now, Onkyo Corp. and Sound United have called off their transaction which would have transferred ownership of the 73-year old Onkyo brand, as well as the Integra, Pioneer, and Pioneer Elite brands to Sound United. The shocking news capped off a nearly five month process where many in the industry tried to figure out just how this deal made sense.
This was the second loss of a potential buyer for Onkyo, which admits it is re-evaluating its future based on the failure to sell off its brands.
In a tersely worded release, Sound United announced today that its deal to acquire the Onkyo, Integra, Pioneer, and Pioneer Elite brands is off. Originally announced in May, the deal was said to be conditional on the completion of due diligence, the signing of “definitive agreements” and other specific elements. Apparently, that process was not successful.
Much like any trade show, CEDIA Expo 2019 was full of optimism and good cheer. But with just a few questions to top executives of major exhibitors it is fairly easy to pierce that veil of good cheer to reveal underlying concerns of approaching economic storm clouds. I chatted with Frank Sterns, Sony’s Vice President of AV Specialty/Custom Integration, about the turbulent waters our industry is sailing through and how Sony is faring in the face of these increasing headwinds.
At the the CEDIA Expo earlier this month, Lenbrook had a substantial launch of multiple new models from their collection of brands. Firmly positioned in the mid- to high-end technology market, the new products from Bluesound, Dali, NAD, and PSB continued to forge a path into the new digital audiophile market with high-quality streaming models and high-end in-wall and on-wall speaker and subwoofer solutions.
And in the case of one model, it was an award-winning presentation…
