CarUX, a subsidiary of Taiwanese display maker Innolux Corporation, will acquire Japanese automotive electronics manufacturer Pioneer Corporation for $1.1 billion, marking a profitable exit for private equity firm EQT after a seven-year turnaround effort.
The deal, valued at ¥163.6 billion ($1.1 billion), represents a decent return for EQT, which acquired Pioneer through its purchase of Baring Private Equity Asia in 2022. Baring had originally bought the struggling electronics company for $900 million in 2018.
Pioneer, once known for plasma televisions and consumer audio equipment, has been repositioned as an automotive technology supplier under private equity ownership. The company generated ¥240 billion ($1.6 billion) in revenue for the fiscal year ending March 2024, according to CarUX executives.
The acquisition allows CarUX, which specializes in automotive displays, to expand beyond screen technology into Pioneer’s audio systems and software capabilities. CarUX Chairman Jim Hung cited the integration potential between display technology and automotive electronics, though such synergy promises are common in acquisition announcements.
Innolux, Taiwan’s display panel manufacturer with NT$216.5 billion ($6.7 billion) in 2024 revenue, has been diversifying beyond traditional panels as the industry faces margin pressure from Chinese competitors.
CarUX disclosed plans for a US public listing earlier this year, potentially providing an eventual exit strategy for the combined business. The transaction requires regulatory approvals and is expected to close in the fourth quarter.
