Innolux subsidiary CarUX to acquire Japan's Pioneer

Taipei, June 28 (CNA) CarUX Holding Ltd., a smart cockpit solutions subsidiary of Taiwan's leading flat panel maker Innolux Corp., has agreed to acquire Japan's Pioneer Corp. as part of Innolux's strategy to expand in the global automotive electronics market.

Innolux said in a statement that CarUX, headquartered in Singapore with operations and manufacturing in Asia and four R&D centers across Europe and Asia, has signed a definitive agreement with investment firm EQT to acquire 100 percent of Pioneer for 163.6 billion Japanese yen or about NT$33.7 billion (US$115 million).

According to Innolux, Pioneer specializes in automotive sound systems, multimedia and human-machine interface (HMI) software development, and has established long-term partnerships with major Japanese and global automotive original equipment manufacturers (OEMs).

With the global flat panel market facing a downturn, many major manufacturers -- including Innolux -- have been looking to diversify into other sectors to counter the effects of oversupply and falling panel prices, according to market analysts.

Innolux, which has moved into the automotive electronics sector, reported earnings per share of NT$0.78 in 2024 after selling a plant and equipment in the Southern Taiwan Science Park to Taiwan Semiconductor Manufacturing Co. for over NT$17 billion -- a move aimed at offsetting weakness in its panel business and reversing two years of losses.

Innolux described the acquisition of Pioneer as a strategic move to boost CarUX's presence in the Asia-Pacific market and diversify its global business portfolio.

"This acquisition creates strategic synergies for both CarUX and Pioneer," Innolux Chairman and CEO Jim Hung (洪進揚) said in the statement. "With Pioneer's established ties to Japanese and global OEMs, CarUX can quickly expand its presence -- especially within Japan's traditionally exclusive automotive supply chain."

Echoing Hung's remarks, Innolux said combining the strengths of both companies -- particularly in visual, audio and HMI integration for smart cockpits -- will further enhance CarUX's product competitiveness.

By integrating both companies' R&D and manufacturing networks, CarUX will gain stronger regional capabilities and greater agility to meet the evolving needs of global automotive OEMs and consumers, Innolux added.

The transaction is subject to regulatory approvals and other customary closing conditions, Innolux said.

J.P. Morgan Securities (Asia Pacific) Limited is acting as exclusive financial advisor to CarUX, with Sullivan & Cromwell (Hong Kong) LLP serving as legal counsel for the transaction.

Innolux said it plans to take CarUX public in the U.S. market, and that the listing will move forward after the acquisition is completed.