On February 9, AAC Technologies Holdings Inc. (AAC) is pleased to announce that, following the announcement on the proposed acquisition of Acoustics Solutions International B.V. on August 10, 2023, the circular on January 18, 2024, and the poll results of the extraordinary general meeting on February 6, 2024, the first tranche completion of the proposed transactions pursuant to the relevant sale and purchase agreement has been completed on February 9, 2024.
Upon completion of this transaction, Premium Sound Solutions (PSS) becomes an 80% indirectly owned subsidiary of AAC, and its financial results will be consolidated into AAC’s financials.
This acquisition is a strategic move to accelerate AAC’s diversification into the automotive industry and to enhance its acoustic capabilities. It not only broadens AAC’s product portfolio but also represents a significant transformation in business development. The synergies from both PSS and AAC’s existing businesses will further enhance AAC’s market positioning.
In the future, AAC will rely on its technology and resource advantages, combined with PSS’ rich product portfolio, global manufacturing operations, and solid supply chain relationships with global OEMs, to provide innovative high-quality audio system solutions to enhance automotive infotainment and sensory experience. At the same time, AAC will further broaden its global operational footprint across key business segments to better support customers’ development and further penetrate global automotive industry.
Kelvin Pan, Executive Vice President of AAC, shared that, “This acquisition will support AAC’s development strategy and promote the high-quality development in the automotive industry. By integrating the technology and resource advantages, we will deliver differentiated audio system solutions to global customers and provide users with high-quality intelligent driving sensory experience.”
“PSS has a solid financial position with an industry leading gross profit level, which would be further enhanced by its growth potential as well as synergies with AAC in the future.” Dan Guo, Chief Financial Officer of AAC, highlighted. She added that PSS is a company with a low debt level, sound cash flow, and high operational efficiency. In addition, the transaction structure aligns the management teams from both sides with the same goal and further boost the certainty of achieving higher commercial value. The consolidation of financial statements is currently in good progress and is expected to be completed in the first half of this year.
“In the mid-to-long term, the benefits of acquiring PSS will be realised not only in the area of speakers, but also in the vertical integration that will combine AAC’s edges in other components and services, including audio power amplifiers and tuning. AAC will be able to enhance the overall value of its product portfolio.” Tingjia Shi, Senior Vice President of AAC, said that, “With AAC’s strength in optics, haptics, sensor and semiconductors components, remarkable synergies are expected to be released to support the breakthrough in business transformation to fuel further development for the Company.”
About PSS：
PSS is a leading global provider of acoustic components and sound systems with over 50 years of operating history. It produced over 110 million loudspeakers last year and maintains a diversified global manufacturing footprint across several countries. With a rich history of innovation and strong track record of delivering quality products, PSS is a Tier 1 supplier to a diversified base of global automotive original equipment manufacturers, which include a growing selection of electric vehicles and plug-in hybrid electric vehicles.
In addition, PSS retains a sizeable portfolio of commercial relationships in the premium and branded consumer audio segment. Supported by a strong and diversified pool of talent alongside technology capabilities, the existing business of PSS is well-positioned to continue capitalising on strong growth and increasing demand for advanced premium sound solutions across segments in the coming years.
In the future, AAC will empower smart cabin audio system upgrades and support branded audio for future expansion. With innovation as the core foundation, AAC Technologies will provide customized products, services, and technical support at all levels，which could help OEM customers to deal with the complex acoustic challenges in the smart car era. AAC will consistently create ultimate and novel experiences, enrich system value and build leading product competitiveness.