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Voxx International (NASDAQ:VOXX) is interested in making complementary acquisitions that allow the consumer electronics company to enter new markets or expand its presence in existing ones, CEO Patrick Lavelle said.
Hauppauge, New York-based Voxx is most interested in buying businesses that manufacture consumer electronics and accessories that complement its existing product portfolio, Lavelle said. Synergistic automotive and audio brands are also of interest, he said.
Targets should be accretive and include a management team willing to work with Voxx, he said.
The US is the primary geographic focus for Voxx’s M&A activities so it can leverage its existing overhead but Lavelle said Europe, particularly Germany, and Asia are also regions of interest.
The company reported it had a little more than USD 5.6m in cash as of 30 November. It also has a USD 140m revolving credit facility, which is provided by a number of banks led by Wells Fargo and can be expanded up to USD 175m.
Voxx spent USD 20.2m when it acquired a 54% stake in biometrics technology provider Eyelock in September 2015. Eyelock falls within Voxx’s consumer electronics and accessories segment.
Voxx makes a broad range of consumer electronics products for a diversified customer base that consists of automotive OEMs, specialty consumer electronics, and mass merchandise retailers, power retailers, 12-volt specialists, and other commercial entities.
It introduced a number of new products at CES in Las Vegas earlier this month, including wireless speakers for the indoors and outdoors, a portable Singtrix-branded karaoke system and an aftermarket power lift-gate system for vehicles.
The new products should help Voxx show improved top- and bottom-line growth in the year ahead, Lavelle said. Voxx has a USD 101m market cap.
by Troy Hooper in San Francisco
As seen in the mergermarket newsletter on 20/01/2017