Pioneer will spin off its DJ equipment business into...
Pioneer will spin off its DJ equipment business into a joint company, Pioneer DJ, of which it will own 15 percent, so it can better deploy its assets on vehicle infotainment and other car electronics sectors, the company said Tuesday.…
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The global investment firm KKR will be the majority owner in Pioneer DJ after it pays Pioneer $551 million to acquire all shares in the spinoff and Pioneer then pays KKR an undisclosed sum to buy back 15 percent of the shares, Pioneer said. “As we accelerate our efforts to concentrate management resources on our car electronics business, Pioneer has been seeking the optimal partner to further the globalization of our DJ equipment business and expand the brand.” In KKR, Pioneer found a company with “a wealth of experience in the technology and media industry globally, and we are confident it has the expertise to drive Pioneer DJ forward,” it said. Pioneer wants to be a top “comprehensive infotainment” supplier that “creates comfort, excitement, safety and reliability in vehicles,” the company said. It aims to do so by becoming “an indispensable key supplier to automakers and their mega-suppliers, based on the expertise and customer confidence we have gained in the OEM market,” it said. In the consumer aftermarket, “we will drive the car electronics industry as a pioneer in providing new value in the connected car life market, by being the first company to provide and expand world-first, cutting-edge solutions,” it said.