Gentex Corporation (NASDAQ: GNTX) has announced its definitive agreement and plan of merger to acquire Voxx International Corporation (NASDAQ: VOXX) in an all-cash transaction. The purchase price is set at $7.50 per share. This acquisition is expected to close in the first quarter of 2025, subject to approval from Voxx's shareholders, certain regulatory approvals, and other customary closing conditions.
The majority of Voxx's revenue comes from the automotive OEM and aftermarket business, as well as the consumer electronics industry. Through this acquisition, Gentex will gain access to Eyelock® iris biometric technology, providing further product applications into the automotive, aerospace, and medical markets. Additionally, Gentex will acquire the premium audio company, which includes well-known brands such as Klipsch®, Onkyo®, and Integra®. Gentex anticipates that its annual revenue will increase by $350 million to $400 million as a result of this acquisition.
Following the acquisition, Gentex plans to develop and execute strategic growth plans for the acquired business units. The company also expects to improve profitability by leveraging consolidated purchasing and supply chain activities, combining ERP systems, strategically in-sourcing certain manufacturing processes, and removing public company costs and redundancies. Gentex estimates an approximate pro-forma annual EBITDA contribution of $40 to $50 million as a result of the acquisition once profitability improvement measures have been executed. Additionally, the company expects to benefit from post-closing tax benefits of approximately $15 to $20 million related to tax loss and tax credit carryforwards derived from the acquisition over the next 5 to 6 years.
Gentex believes that the acquisition of Voxx will contribute to its long-term growth and profitability strategies, creating shareholder value through increased revenue in existing and new markets, potential growth from acquired technologies, significant net asset values, and combined brand value and reputation.
Jones Day is serving as legal counsel, and Acropolis Advisors are serving as financial advisor to Gentex and its board of directors. Solomon Partners is serving as financial advisor to the transaction committee of the board of directors of Voxx, and Bryan Cave Leighton Paisner LLP is serving as its legal counsel. Stopol & Camelo, LLP acted as legal counsel to Voxx. Following these announcements, the company's shares moved 2.0%, and are now trading at a price of $30.54. If you want to know more, read the company's complete 8-K report here.
