Yamaha and Nexo S.A. Reach Agreement to Enter into Strategic Alliance
Jul 8, 2005 11:55 AM
Yamaha and speaker manufacturer Nexo S.A. have reached a basic agreement to enter into a strategic alliance with respect to professional audio product development and distribution. The companies believe that the integration of advanced digital technology and premier speaker technology will greatly enhance the system solutions in professional audio products.
As a part of the alliance, Yamaha has acquired 10.22 percent of the common shares of Nexo.
Details of Alliance
Yamaha has more than 30 years of mixing console development and manufacturing experience, with more than a 15-year history in digital mixing console technology, including industry-standard products such as PM1D and PM5D. Yamaha is also well known for its range of digital signal processors, power amplifiers, and speakers, such as the DME24N/64N and PC-1N power amplifiers.
Nexo is one of the market leaders in concert/touring and installation speakers, with an excellent reputation in line-array speakers, such as the GEO series, as well as the PS series of speakers, which are best sellers around the world. Nexo is also well known for its premier speaker processing technologies.
“The alliance between Yamaha Corporation and Nexo will provide customers an excellent opportunity to realize what will become the future of professional audio product integration,” states Denis Baudier, worldwide sales director, Nexo S.A. “Both companies’ product know-how complement each other, with Yamaha as an expert in DSP and Nexo as one of the leaders in professional audio speaker manufacture, able to provide the market complete system solutions that customers have long awaited.”
The combination of Yamaha and Nexo products in response to the increasing demand for integrated professional audio systems was key to both companies’ decision to combine technologies and products through joint-development projects.
“The alliance between Yamaha Corporation and Nexo will enable us to offer the U.S. commercial audio market a complete system solution,” states Larry Italia, general manager, Yamaha Commercial Audio Systems Division. “Customers will be the beneficiaries of this partnership, not only with the vast product lines currently offered by both companies, but all future products developed as part of the agreement.”
Outline of Agreements
(a) Yamaha acquired 10.22 percent of Nexo’s common stock. The share sales/purchase transaction was completed on June 24. As a result of this share purchase, Yamaha will become the third largest shareholder of Nexo.
(b) Yamaha and Nexo agreed to combine and maximize Yamaha’s broad background in professional audio equipment, including advanced digital audio technology, and Nexo’s superior speaker design and manufacturing technologies by jointly developing a variety of future products.
(c) Yamaha will take over Nexo’s U.S. distribution, and Yamaha Corporation of America, a wholly owned sales subsidiary of Yamaha through its Commercial Audio Systems Division, will be in charge of distributing Nexo speakers in the United States.
Outline of the Alliance Partners
Official company name: Nexo S.A.
Location of headquarters: Paris, France
Date of establishment: 1979
Representative: Eric Vincenot (President)
Number of employees: Parent company, 52; Consolidated, 110
Lines of business: Manufacture and sales of professional speakers
Internet URL: www.nexo-sa.com
Official company name: Yamaha Corporation
Location of headquarters: Hamamatsu, Shizuoka Prefecture
Date of establishment: 1887
Representative: Shuji Ito (President and Representative Director)
Number of employees: 24,000
Lines of business: Manufacture and sales of musical instruments, AV equipment, semiconductors, and other products
Sales: 534.1 billion Yen (Fiscal year ended March 31, 2005)
Internet URL: www.global.yamaha.com