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Audiovox Buys Klipsch Group (Jamo, Mirage, Energy and Athena)

by January 10, 2011
Audiovox Buys Klipsch Group

Audiovox Buys Klipsch Group

Big news in the audio world this week. In a move that took everyone by surprise - at least those not in the know - Indianapolis high-end speaker maker Klipsch Group has agreed to be purchased by New York-based Audiovox Corp. Audiovox said on Thursday it has signed a “non-binding term sheet” to acquire all of Klipsch’s shares. That's right, Audiovox, a rather large company (bigger than some might think) will soon control all of Klipsch’s brands, including Jamo, Mirage, Energy and Athena. Audiovox is a leader in the automotive electronics and accessories field and even have a large presence in the consumer electonics category. Audiovox markets products under the Audiovox, RCA, Jensen, and Acoustic Research brand names.

Audiovox, through Acoustic Research makes like 13 tabletop radios, accessories such as remote controls and networking over powerlines. They also produce headphones & earbuds, speakers, cables and power protection devices (among other things). RCA, a brand that is very well known to anyone who lived as a generation X-er or prior, and are still manufacturing products in the consumer electronics sector - from clock radios, to mp3 players to home and portable audio solutions. Jensen is almost legendary in its available mobile and marine products. n the home audio front they make all manner of gadgets, gizmos and CE products for a variety of uses and needs. One of their specialtues is branded products, which are sponsored by the likes of M&M and Studebaker, among others.  The Audiovox brand, of course, is extremely robust and produces electronics in the segments of Consumer, Mobile and Corporate. 

What they appear to lack - at least as far as we're aware - is a strong presence in the consumer electronics loudspeaker market. The acquisition of Klipsch Group should change that.

“The Klipsch brand is world-renowned and we believe Audiovox shareholders will benefit from the value of their unique market position, diversified customer base in home and professional channels, and their ongoing commitment to innovation."

- Audiovox CEO Patrick Lavelle


According to an Indianapolis report, Klipsch officials have yet to comment on the proposed deal. Founded in 1945 by Paul Klipsch, the company has 210 employees, including 130 in Indianapolis. It has annual revenue of more than $175 million.

The company said in its announcement that the deal is “subject to a number of contingencies.”

About the author:
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Clint Deboer was terminated from Audioholics for misconduct on April 4th, 2014. He no longer represents Audioholics in any fashion.

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trdsjgf posts on January 19, 2011 15:29
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trdsjgf posts on January 19, 2011 15:24
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trdsjgf posts on January 19, 2011 15:23
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digicidal posts on January 16, 2011 22:05
InTheIndustry, post: 783127
Hey, gang….

There's an incredible…. and I mean like, almost all of it…. amount of missunderstanding and assumptions being made about the business side of consumer electronics.

Long post in the other thread, but wanted to add a response here more on-topic for the Audiovox/ID Guys issues raised by myself and others in this one.

I think most consumers (OK - maybe not “most” but most informed consumers at least) are completely aware of the additional overhead that a retail store requires - but that's not the issue here. As stated, many would be willing to pay extra for the same products to receive ID quality goods - with B&M-style services and costs.

The issue is pertinent to this thread because that is the fear at a most-basic brand level as well. Many of the newly acquired marks now under the Audiovox banner were well respected both for their products and their customer loyalty. I know I spent many hours on the Klipsch forums, and I didn't even think their speakers were that great - but I did think their support was great. As they got bigger and acquired more brands and moved manufacturing to China - all of that disappeared. The forums were still there, but the employee presence was all but gone.

Now that they're all under the Audiovox name - it's likely that EVERYTHING will disappear - with the exception of lower quality products, with virtually no support whatsoever. It's the sell-it-and-forget mentality. The same has happened at the B&M retail level - the concept of customer loyalty is gone. There's no more of the “this guy only has $500 today - but he may need a $60K full-house system 4-5 years from now… so I'll treat him the same as everyone else”.

Is that such an illogical and unreasonable expectation as a consumer? Is CE an industry which is so ‘strapped for cash’ that the only way to operate at a profit is to scorn all but the big-ticket buyers, and then scorn everyone (including them) after the point of sale? With many of the ID brands you can send an email to the president of the company and receive a personal response within a day or so - while I don't expect that from the president of Audiovox or Denon or similar company… I often can't even get a response from call center employees in India within 72 hours at half of these companies… or a call back from a local dealer I've spent thousands at for that matter.
InTheIndustry posts on January 16, 2011 11:28
Seth=L, post: 783140
I would like it if you started such a thread.

Here you are, sir!

http://forums.audioholics.com/forums/showthread.php?t=71560
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