It was a question of time. When Massimo Corporation, a huge medical technology company, decided to buy a package of premium audio brands (Denon, Marantz, Bowers & Wilkins, Polk Audio and some less known others) owned by US company Sound United LLC, many in healthcare business raised eyebrows. It is widely reported that the then CEO of Massimo Joe Kiani had pushed through with this decision which later alienated Massimo Board of Directors. As soon as Joe Kiani was removed from the CEO position, sale of Sound United was a question of time indeed.
The definitive agreement for the acquisition was announced on May 6 between Massimo Corporation and Harman International Corporation, which is a part of Samsung Electronics Co Ltd. The transaction is subject to the satisfaction or waiver of certain closing conditions, including the receipt of any required regulatory approvals.
Harman International already sells and develops domestic, studio and automotive products under such brands as JBL, Harman Kardon, AKG, Mark Levinson, Arcam, Revel and some others. While addition of Denon, Marantz, Polk Audio and Bowers & Wilkins to this portfolio may seem viable to some analysts, the 'other' Sound United brands like Definitive Technology, Classé Audio and Boston Acoustics seem to be redundant as direct competition to existing product. We will soon see what future developments are in the works for Harman with this new pool of brands.
Further information and legal notices are available in Harman press-release.
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