Primax acquires 70 percent of Tymphany
By Kathryn Chiu ,The China PostTAIPEI, Taiwan -- Primax Electronics (致伸科技) announced on Tuesday that it has signed an agreement to purchase 70 percent of Denmark-based Tymphany, an acquisition expected to boost the company's 2014 bottom line.
October 16, 2013, 12:11 am TWN
Primax yesterday resolved in a board meeting to a inject US$84 million into Tymphany, in turn taking a 70-percent share of the company. Tymphany currently has a market share of 15-25 percent for high-end bluetooth speakers.
The acquisition is expected to be completed before the end of 2013 after the necessary regulatory approvals are secured.
Primax Chairman and Chief Executive Officer (CEO) Raymond Liang (梁立省) said in a company statement that the purchase is part of Primax's efforts in expanding its presence in the digital audio marketplace.
Liang told the Central News Agency that the purchase will significantly raise the share of Primax' digital family product line by over 15 percent in terms of revenues.
Tymphany has several factories and R&D centers in south China and employs 2,500 employees in China, the U.S., and Europe. Tymphany's speaker and acoustic technology can be traced back to an 80-year heritage founded in Denmark.
Liang revealed that Tymphany's major customers include leading audio equipment brands, including Bose Corporation and B&O. In recent years, it has expanded its business to include digital music players, wireless speakers, among other devices and gadgets, Liang said.
Tymphony's posted NT$2.76 billion in 2012 consolidated revenues, a 70-percent sequential jump and net income of NT$210 million. With the contribution of new product lines, Tymphony is expected to register a 60-percent annual jump in 2013 consolidated revenues.
Taiwan-listed Primax is the world's largest PC peripheral equipment manufacturer. It also supplies accessories for smartphones/tablets and multifunction printers.
Eyeing the current US$13 billion market scale and average annual growth of 30 percent of consumer electronics audio equipments, Liang said Primax has now set footholds in the market and is taking root after Tymphony acquisition.
In order to complete the acquisition as scheduled, Liang said Primax will get part of the funds via syndicate loans.
Synthesis Effect Comes into Play in 2014
Primax recently posted NT$31.25 billion in consolidated revenues for the third quarter of 2013, little change from the previous year. Liang yesterday indicated that the result was dictated by the weak PC demand.
However, as the new design projects of smartphones and digital family projects enter mass production, Primax is expected to see a pick-up in the fourth quarter, Liang said.
Tymphany has been growing at the pace of 40 percent per year for the past 2 years, according to Primax.
"Tymphany has a very healthy margin and balance sheet,” stated Brian Yang, Primax Chief Operating Officer. “We believe the acquisition will contribute to both the revenues and the earnings of Primax next year.”