The sale of Vox International and their Premium Audio Products Group to a US automotive parts Company, has led to speculation that the Company is set hive off the loss making PAP audio business and brands such as Klipsch, Integra, and Onkyo, in a move that would benefit arch rival Masimo Consumer the manufacturer of Denon and Marantz audio products.

Gentex Corporation a US$2.4 billion supplier of largely automotive-related products, acquired the shares in Vox International they did not already own for US$196M in a deal announced this week, PAP is a very small part of the deal with some observers claiming that they do not see an upside future for the PAP business especially in small markets such as Australia, where the operation has failed with Westan being appointed as their distributor.

Gentex who already owned a large proportion of VOX shares after acquiring a significant holding back in 2023 from Voxx President Beat Kahli who disposed of half of his entire holdings in Voxx by selling them to Gentex at $10/share included comment about their Premium Audio Products business claiming “The acquisition will also include the Premium Audio Company, which is known as the most innovative and complete premium audio solution provider in the consumer technology space and includes world renowned brands such as Klipsch, Onkyo and Integra.” which some observers are claiming was pure “hyperbole” as the business is struggling with demand for Integra and Onkyo and most receiver brands falling globally.

In their latest acquisition Gentex mopped up the rest of the shares for US$7.50 per share.

Currently the majority of VOXX’s revenue comes from their automotive OEM and aftermarket business, then there is the consumer electronics industry.

What we have managed to glean is that Gentex wants to move into the smart home market using the Eyelock iris technology platform they acquired as part of their VOXX acquisition and their own Gentex products, which include as Place, and HomeLink Smart Home Solutions.

The Eyelock technology is seen as an extremely accurate and highly secure method of authentication, which will provide further product applications into the Gentex automotive, aerospace, and medical markets as well as into the premium home market.

While there was little if any mention of Voxx audio business Gentex management did push their HomeLink products which is a garage door opener solution that is installed in vehicles.

“HomeLink has helped drivers activate devices such as garage doors, estate gates, and home lighting from buttons conveniently integrated into a vehicle.” management claimed.

They also believe that HomeLink can be used to operate home automation systems from a vehicle.

US industry web site Strata Gee wrote of the deal and the future of PAP “For the audio brands, I am not optimistic that this deal will work out for them. Similar to Sound United at Masimo, Premium Audio Company is a perilously small part of the Gentex universe. That’s a dangerous place to be”.

I’m sure PAC sales teams are already out there pitching dealers on how great it is going to be by becoming part of a $2.5 billion sugar daddy. But that sugar daddy seems to have unrealistic expectations for the opportunity audio represents. And that new parent company has no experience in audio”.

This week Gentex shares fell 4.5% following the mopping up of shares in Voxx International.