© Sennheiser Communications Electronics Production | September 13, 2018
Sennheiser ends JV with William Demant
In order to capture opportunities lying ahead in the business segments of Sennheiser Communications A/S – William Demant and Sennheiser have decided to end their joint venture and let the business segments evolve in a different set-ups.
For more than 15 years, the joint venture Sennheiser Communications – a 50/50 split ownership between Sennheiser and William Demant – has developed and promoted Sennheiser branded portfolios of Enterprise Solutions, Gaming and Mobile Music headsets. The end of the joint venture formally implies a cash free split of ownership structure. To be able to fully capture these opportunities, both parties have the wish to dedicate their focus on different business segments with full end-to-end responsibility. While the business segments of Enterprise Solutions and Gaming headsets will evolve as an independent business as part of the William Demant Group, the business segment of Mobile Music headsets will be part of the Sennheiser Consumer business in the future. The separation happens in good faith and the partners intend to continue their cooperation where synergies and opportunities exist, a press release reads. “The joint venture has been a successful journey for both partners, during which we have collaborated on the development of new technology and have seen an ongoing growth of market shares. All three business segments continue to have tremendous potential for the future,” says Daniel Sennheiser, co-CEO at Sennheiser As the market dynamics have changed during the years and full end-to-end dedication is needed including a focused R&D approach, the time is now right to continue – each of us – in our own focused directions,” Søren Nielsen, President & CEO at William Demant adds. The separation is planned for January 1, 2020. Until then, the company Sennheiser Communications will continue its business while Sennheiser and William Demant will prepare the separation together in order to ensure a seamless and smooth transition for employees, customers, suppliers and partners. Going forward, William Demant will take over the business segments of Enterprise Solutions (CC&O) and Gaming including the distribution, which has been with Sennheiser until now. The new entity under William Demant will continue the license agreement with the Sennheiser brand for the Enterprise Solutions and Gaming portfolios. Throughout 2018 and 2019, profit sharing of Sennheiser Communications between Sennheiser and William Demant will remain as today.