Real Car Audio

[Jay]

D&M Holdings Inc. and Boston Acoustics, Inc. announced the signing of a definitive merger agreement for D&M Holdings to acquire Boston Acoustics through its subsidiary D&M Holdings US Inc. D&M Holdings is the owner of Denon, Marantz, McIntosh Laboratory, and the D&M Professional, ReplayTV(R), Rio(R) and Escient(R) brands.

D&M Holdings will acquire Boston Acoustics for $17.50 per share in cash for a total of approximately $76.0 million. This transaction is expected to be immediately accretive to D&M's earnings upon closing.

D&M is planning to operate Boston Acoustics as a distinct brand but with the benefit of D&M's sales, technology and cost synergies by leveraging product distribution channels, product development and back-office integration, the company reports.

"Andy Kotsatos, co-founder and chairman of Boston Acoustics, has created an award-winning, innovative company with a strong design and engineering team," said Tatsuo Kabumoto, chief executive officer of D&M Holdings. "We will now build upon the success of this outstanding brand. We see significant opportunities to leverage marketing and sales activities. We also expect to find multi-brand opportunities in the automotive OEM business."

Said Andy Kotsatos: "The benefits to us of joining D&M are enormous. They provide us with state-of-the-art technology and experience in home entertainment products. They will be able to help us grow our brand outside North America. And they will provide us with marketing know-how to substantially increase our table radio and music system business. We are delighted to be part of the company's portfolio."

The transaction, which has been approved by the Board of Directors of Boston Acoustics, is subject to the approval of the company's shareholders and the satisfaction of other customary closing conditions, including the receipt of required financing. Mr. Kotsatos, his wife and the Kotsatos family trusts and Daeg Partners LP have each agreed to vote their shares, representing approximately 33.2% and 4.8% of the voting stock of Boston Acoustics, respectively, in favor of the transaction. The transaction is expected to close by August 31, 2005.

Boston Meridian, an investment bank that specializes in providing merger and acquisition services and raising private capital for growth companies, served as financial advisor and Nixon Peabody LLP served as legal advisor to Boston Acoustics in the transaction. Simpson Thacher & Bartlett LLP served as legal advisor to D&M Holdings.

Boston Acoustics, Inc. was founded in 1979 and is located in Peabody, Massachusetts, U.S.A. Fiscal year 2004 revenue is $52.6 million and revenue for the nine-month period of its fiscal year 2005 ending December 25, 2004 is $42.8 million.
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Thank You,
Jayson Benoit
Owner / Administrator
RealCarAudio.com

[HOAX]

My only question about this is how will it effect the quality of BA? I have always thought of their upper lines to be of incredible quality.. Guess we will have to see how it goes in the next year or so.
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2003 Audi A4 1.8T
Sound to come!