AAC Technologies has completed the acquisition of 80% equity stake in Premium Sound Solutions (PSS) company.

Zhitong App learned recently that AAC TECH (02018) announced the completion of the first batch of proposed transaction matters as stipulated in the purchase agreement on February 9, 2024, based on the announcement of the proposed acquisition of Acoustics Solutions International B.V. on August 10, 2023, the circular on January 18, 2024, and the voting results of the extraordinary general meeting of shareholders on February 6, 2024. With the completion of this transaction, Premium Sound Solutions (PSS) has now become an indirect subsidiary of AAC TECH with an 80% ownership stake, and its financial performance will be consolidated into AAC TECH's overall performance. This acquisition aims to accelerate AAC TECH's diversification in the automotive industry and enhance its portfolio of sound solutions. It not only enriches the product structure but also signifies a significant transformation in business development, generating synergies with AAC TECH's existing operations and further enhancing its market position. In the future, leveraging its technological and resource advantages, AAC TECH will combine with PSS's rich products, global production operations, and stable supply relationships with global OEM manufacturers to provide innovative high-quality audio system solutions. This will enhance automotive information entertainment and user perception experiences. Additionally, AAC TECH will effectively expand its operational capabilities in all key business areas globally to better support customer development and accelerate penetration into the global automotive industry. Kelvin Pan, Executive Vice President of AAC TECH, stated, "This acquisition will better support the company's development strategy and drive high-quality development of the in-vehicle business. By integrating the technological and resource advantages of both parties, we will better provide differentiated audio system solutions for global customers, offering high-quality intelligent driving perception experiences." "AAC TECH CFO Guo Dan emphasized, "PSS's financial performance is robust, with industry-leading gross profit levels, growth potential, and anticipated synergies with the company." PSS has low debt, stable cash flow, and high operational efficiency. Furthermore, the specific transaction structure allows both management teams to have very consistent goals, enhancing the certainty of achieving commercial value. The consolidation process is progressing smoothly and is expected to be completed in the first half of this year. "In the medium to long term, the benefits of acquiring PSS are not limited to speakers but can also be combined with AAC TECH's own strengths to vertically integrate with other components and services, including audio amplifiers and tuning, to enhance the overall value proposition of the product portfolio." AAC TECH's Senior Vice President, Shi Tingjia, stated, "By collaborating with other businesses such as optics, motors, semiconductors, and sensors, we can unleash significant synergies, achieve breakthroughs in business transformation, and help the company develop better and faster." Zhitong App learned that PSS Company is a leading global supplier of acoustic components and audio systems, with over 50 years of business operations. Last year, they produced over 110 million loudspeakers and have established a diversified global manufacturing footprint in multiple countries. With a rich history of innovation and a track record of delivering high-quality products, PSS Company has become a primary supplier to diversified global automotive OEMs (including an increasing number of electric and plug-in hybrid vehicles). Furthermore, PSS Company maintains a significant commercial network in the high-end and branded audio consumer goods sector. With the support of a strong and diverse team of talents and technological capabilities, their existing business is well-prepared to seize robust growth and rising demand in various sectors in the coming year. In the future, AAC TECH will empower and support brand audio systems by upgrading intelligent cockpit audio systems. They will address the diverse audio needs of OEM customers, with innovation as the core foundation, providing customers with products, services, and technical support at all levels. This will help OEM customers tackle the acoustic challenges of the smart car era, create ultimate and novel experiences, enhance system value, and establish a leading product competitiveness.