Audio Video News

In a move that says as much about the state of the audio industry as it does about VOXX International’s strategic ambitions, Gentex Corporation is snapping up VOXX—including its crown jewels, Klipsch and Onkyo—for a mere $196 million. That’s not just VOXX, the company: that’s Premium Audio Company, VOXX’s high-end audio division, home to two of the most storied names in the audio world.

Let’s break that down. Klipsch, the maker of iconic horn-loaded speakers, commands respect among audiophiles and casual enthusiasts alike, while Onkyo, despite a turbulent few years, still carries significant brand equity in home theater and hi-fi circles. Together, they form the core of VOXX’s premium audio empire, which also includes a smattering of other well-regarded brands.

And yet, the entire VOXX portfolio—spanning not just Premium Audio but also automotive electronics, biometrics, and consumer tech—was deemed worth less than $200 million. By comparison, Klipsch alone has launched countless iconic products and commands a strong following. Onkyo, despite its financial woes, was once synonymous with high-quality home theater receivers. The question practically begs to be asked: If the brands themselves could be sold individually, might they fetch a better valuation than being lumped into this all-you-can-eat buffet of a deal? Consider VOXX paid approximately $166 million for Klipsch alone in 2011: that's $232 million in inflation-adjusted dollars!

It's a moot point, the deal is done. For Gentex, best known for dimmable glass and automotive mirrors, the acquisition could be a savvy play. Premium Audio Company gives them an instant foothold in an industry that, while not exactly booming, still holds cachet among consumers with disposable income.

With the caveat that stock valuations are wildly variable and often not grounded in reality, it’s somewhat striking how little these venerable audio brands seem to be worth. Consider this: The $7.50 per share Gentex is paying represents a 163% premium over VOXX’s unaffected stock price of $2.85 back in August. That might seem impressive until you remember the absolute dollar amount—a fraction of what companies in less tangible sectors routinely command. A social media app that does little more than make faces look cartoonish can rake in billions. Klipsch and Onkyo? Apparently, they’re part of a package deal worth less than some startups’ Series A rounds.

This pricing disparity highlights the brutal reality of today’s market: hardware, no matter how storied or high-quality, simply doesn’t hold the same appeal to investors as flashy tech or ephemeral software. VOXX’s Premium Audio brands remain beloved among enthusiasts, but in the grand calculus of enterprise valuation, they’re just another line item.

Still, there’s a silver lining for Gentex. Klipsch and Onkyo have a wealth of engineering expertise, loyal customer bases, and established distribution channels. If Gentex leverages these assets wisely—pairing Klipsch’s home audio prestige with Onkyo’s innovation in receivers—they could breathe new life into these brands, generating returns far exceeding what VOXX itself was able to muster.

Ultimately, this acquisition forces us to confront the uncomfortable question: If two of the most iconic names in audio history are merely components of a $178 million deal, what does that say about the value of the industry as a whole? For Gentex, it’s a potential windfall. For Klipsch and Onkyo fans, it’s a moment to hope the new owner understands just what it is they’ve bought—and knows how to make it sing.

Roughly concurrent to this announcement, Onkyo has launched a rebrand that you can read about here.

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Correction: this article had previously listed the purchase price at $178 million. The accurate purchase price is $196 million.