Bang & Olufsen has completed the previously announced transaction with Harman International Industries, Incorporated and its affiliates.
The automotive assets are transferred and the brand Bang & Olufsen is licensed to HARMAN.
Bang & Olufsen expects to receive approximately DKK 1,130 million in net proceeds from the transaction after tax and transaction costs including DKK 93.1 million of cash placed in escrow for 15 months to secure any warranty related claims.
Going forward, Bang & Olufsen is guaranteed an annual minimum license fee of DKK 12.7 million for a 20 year period starting 2017/18. The future variable license fee will be subject to the corporate tax rate at the time of their respective receipt.