Global investment organisation EQT has agreed to the sale of Pioneer Corporation to CarUX, a subsidiary of Taiwan-based Innolux Corporation and smart cockpit solution innovator, for $1.1bn.
This move signifies a substantial milestone in Pioneer’s evolution, especially following the transformation initiatives since EQT’s initial investment in 2019.
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Completion of the transaction is anticipated in fourth quarter (Q4) of this year, contingent upon customary conditions and approvals.
Deutsche Securities acted as the lead financial advisor for the deal.
BofA Securities also provided financial advisory services, while Morrison Foerster, White & Case, and Nagashima Ohno & Tsunematsu offered legal counsel to EQT.
Pioneer is a Japanese firm established in 1938, with research and development (R&D) and manufacturing capabilities.
It offers a wide array of solutions, including navigation and audio systems for both original equipment manufacturers (OEMs) and the consumer aftermarket, as well as software and hardware products tailored for the automotive sector.
For the fiscal year ending this March, the Japanese firm has reported double-digit earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins and robust free cash flow.
EQT’s strategic actions included reinforcing corporate governance, appointing a new leadership team, and implementing cost and capital discipline measures, which collectively led to a boost in profitability and cash flow.
Pioneer has reconnected with its foundational expertise in automotive sound by introducing a new amp technology platform and winning substantial projects from both domestic and international clients.
The company has also ventured into new growth areas, including Mobility Services, offering software-led navigation with Japan-specific map data, and Mobility AI Connectivity, featuring AI-based dash cams for global markets.
Pioneer CEO and president Shiro Yahara said: “EQT has been instrumental in helping us drive transformation and innovation while preserving our DNA as a global leader in automotive technology.
“We look forward to this next chapter of growth with CarUX, building on the solid foundation that EQT helped us establish.”
