Gentex Corporation Set to Acquire VOXX International for $7.50 Per Share in All-Cash Deal

Gentex to Acquire VOXX International

In a significant development within the automotive and consumer technology sectors, VOXX International Corporation (NASDAQ: VOXX) has agreed to merge with Gentex Corporation (NASDAQ: GNTX) as part of an all-cash transaction valued at $7.50 per share. This acquisition represents a remarkable 163% premium over VOXX's closing stock price of $2.85 as of August 26, 2024, signaling a robust interest from Gentex following VOXX's announcement that it was exploring strategic alternatives.

Details of the Merger Agreement

The definitive merger agreement stipulates that Gentex will purchase all outstanding shares of VOXX common stock that it does not already own, marking a pivotal moment for the company known primarily for its innovative automotive technologies. The total enterprise value of this transaction is estimated at approximately $196 million. According to Ari Shalam, the Chairman of VOXX’s Board of Directors, this merger ensures a smooth transition and positions VOXX for continued success under Gentex’s management.

This agreement comes after a thorough search for potential buyers, led by a transaction committee of VOXX directors unconnected to Gentex. They worked alongside Solomon Partners as independent financial advisors to evaluate several strategic and financial bidders. The committee's work culminated in a unanimous decision by both the committee and the disinterested members of the Board to approve the transaction.

Benefits for Stakeholders

Ari Shalam expressed confidence that this merger would maximize shareholder value while fostering the legacy of VOXX, originally founded by his father, John Shalam, 60 years ago. The Shalam family’s commitment is evident as they have agreed to vote their substantial stake in favor of the acquisition, displaying alignment with other shareholders.

As this merger proceeds, VOXX expects to close the deal within the first quarter of 2025, contingent upon necessary stockholder approval and anti-trust regulatory easing. The company, known for its strong position within the automotive electronics industry and various consumer technology sectors, anticipates that this acquisition will enhance its operational capabilities and market reach.

Financial Advisors and Legal Counsel

The transaction comes with a framework of professional guidance, with Solomon Partners advising on financial matters for VOXX's board. In addition, Bryan Cave Leighton Paisner LLP is positioned as their legal counsel, while Gentex also engages legal and financial advisors in anticipation of the merger closing.

This acquisition marks a notable trend within the industry, as companies continue to consolidate resources and technologies in an ever-evolving market landscape. The successful integration of VOXX into Gentex's portfolio could potentially reshape the competitive dynamics of the automotive and consumer electronics markets.

For further developments on this transaction, stakeholders are encouraged to stay updated through VOXX’s investor communications and SEC filings, where detailed information about the merger will be disclosed as it becomes available.

As the merger progresses, both companies will work closely to address potential challenges and reinforce commitments to customer relations and employee retention during the transition period.

About VOXX and Gentex

VOXX International has established itself as a leading manufacturer of innovative automotive and consumer technology solutions, built through an expansive distribution network and partnerships with significant global retailers. Gentex Corporation, a distinguished supplier of integrated technologies within the auto industry, focuses on higher efficiency through modern innovations, contributing to a transformed driving experience.

For more information on the merger, visit VOXX’s website at www.voxxintl.com and Gentex’s at www.gentex.com.