The Japanese electronics manufacturer is selling a large chunk of its audiovisual business.
According to a report in The Wall Street Journal, Pioneer has agreed to sell the majority of its consumer electronics business to Baring Private Equity Asia. In addition, another portion of the company will be sold to competing A/V manufacturer Onkyo.
The deal will give Baring Private Equity Asia a 51 percent stake in the company. Meanwhile, the remaining 49 percent will be divided between Pioneer and Onkyo, though the exact breakdown between the two has not been specified. Likewise, the cost of the sale has not been disclosed. Despite the purchase, Onkyo and Pioneer will continue to sell their products under their own separate brands.
The deal is expected to be finalized in late August. The agreement is likely a result of Pioneer's struggling A/V sales which accounted for only about one fifth of its revenue last year. Pioneer will now focus on car electronics.
Source: The Wall Street Journal