VTech Holdings Limited signed an agreement with Pioneer Corp. in which VTech will acquire a manufacturing facility in Malaysia owned by Pioneer Technology (Malaysia) Sdn. Bhd., a subsidiary of Pioneer Corp.
The acquisition of the facility includes its fixed assets and business in manufacturing high-performance audio equipment designed for DJs, producers, and artists to inspire their work. The acquisition willl help strengthen VTech Contract Manufacturing Services’ (CMS) role as a manufacturer of professional audio equipment. It also adds 25 percent to its manufacturing capacity, with potential for further expansion.
VTech will fund the transaction through internal resources. The acquisition is expected to close in the third quarter of this year and is subject to certain closing conditions in the agreement.