Gentex to acquire VOXX International in all-cash deal at $7.50 per share

Gentex is acquiring VOXX International, the U.S. consumer electronics and automotive OEM company, in an all-cash transaction.

At a price of $7.50 as share, estimates put the aggregate enterprise value at approximately $196 million. A release announcing the deal projects it to boost company revenue by $350 million to $400 million per year.

Acquiring VOXX also gives Gentex Corporation “full access to the EyeLock iris biometric technology, which represents a unique, extremely accurate and highly secure method of authentication.” Gentex, which supplies digital vision, dimmable glass and fire protection technologies, anticipates product applications in its automotive, aerospace and medical markets.

In March, EyeLock and fellow iris biometrics firm GalvanEyes merged to create BioCenturion LLC, a move intended to relieve VOXX of the operating costs that came with supporting EyeLock. The financial separation implied therein suggests that while EyeLock’s technology will be made available to Gentex, the company itself is not part of the deal.

Deal grants Gentex all outstanding VOXX stock

Gentex already owns a stake in VOXX common stock, and earlier this year offered to buy the rest for $5.50 a share. Now, under the definitive agreement and plan of merger, it will acquire the remaining issued and outstanding shares for a purchase price of $7.50 per share – a premium of nearly 163 percent to VOXX’s unaffected closing Class A common stock price of $2.85 on August 26.

Per the release, “the transaction is subject to approval of VOXX’s shareholders, certain regulatory approvals and other customary closing conditions, and is expected to close in the first quarter of 2025.”

Initial estimates see the Company expecting “an approximate pro-forma annual EBITDA contribution of $40 to $50 million as the result of the acquisition once the profitability improvement measures have been executed.”

Growth projected but cuts are likely in the short term

Gentex has long had an interest in iris biometrics for authentication, and is keen to leverage its newly acquired assets among its portfolio of connected car, digital vision, dimmable glass and fire protection technologies.

VOXX was founded in 1960 as Audiovox. Gentex sees value in its family of brands, which includes the Premium Audio Company, maker of established audio and home theatre brands Klipsch, Onkyo and Integra. While hi-fi audio hardware is not the market it once was, Gentex plans to leverage the company’s high-volume manufacturing capabilities to grow its footprint in consumer tech and smart homes.

Ultimately, it believes the deal will contribute to long-term profitability and create shareholder value through increased revenue in existing and new markets. Following the announcement, its stock was up nearly 5 percent.

Yet while the plan is for growth, “the Company is reviewing each business unit for strategic fit,” which suggests the hunt for efficiency might result in some personnel shrinkage.

Projections for the next 12-24 months have Gentex looking to “define and execute opportunities to improve profitability of the existing business units, which will include, but is not limited to; leveraging consolidated purchasing and supply chain activities, combining ERP systems, strategically in-sourcing certain manufacturing processes of the acquired business, and removing public company costs, redundancies and other inefficiencies.”

Article Topics

acquisitions  |  biometric authentication  |  biometrics  |  EyeLock  |  iris biometrics  |  Voxx International