Kawasaki City, Japan — Pioneer announced today that it would sell its home A/V, phone and headphone-related businesses to Onkyo, and in turn take a stake in Onkyo of about 15 percent.
Onkyo will acquire all outstanding shares of Pioneer Home Electronics, a wholly owned subsidiary of Pioneer, and the business will be integrated into Onkyo's operations.
A third party, Baring Private Equity Asia, involved in an initial deal announced in June, backed out the agreement that would have had it take a majority stake in the combined business.
Pioneer and Onkyo expect to execute a definitive agreement for the integration by the end of October, with the integration effective in March 2015.
The deal does not include Pioneer's DJ business. Pioneer said a search for a buyer of that unit is ongoing.
Pioneer maintains its vehicle electronics business.