New York (June 30, 2005)–Yamaha Corporation and Nexo S.A. have reached a basic agreement to enter into a strategic worldwide alliance. As part of that agreement, Yamaha will take over the distribution of Nexo products in the U.S., and both companies are casting an eye towards integrating their respective technologies in the future. Cementing the plan, Yamaha acquired 10.22 percent of the common shares of Nexo in late June, making it the loudspeaker manufacturer’s third largest shareholder. The agreement is expected to take effect in August, 2005.
Yamaha’s Commercial Audio Systems Division is best known for its long-running series of consoles and effect units, while Nexo’s emphasis has been its loudspeakers, particularly its variety of compact line arrays, in recent years. The immediate result of the agreement will see Yamaha Commercial Audio Systems Division in the U.S., acting as the exclusive U.S. distributor for Nexo France, warehousing Nexo products outside Atlanta, GA. “We are in the process of establishing which of Yamaha’s commercial audio dealers will sell the Nexo product line on a selective distribution basis,” said Larry Italia, general manager, Yamaha Commercial Audio Systems Division.
The main emphasis for both companies, however, is their plans to integrate their technologies for future products. Italia explained, “Currently, customers are required to use independent equipment in combination, from mixing consoles, signal processors, power amplifiers to speakers, with no ‘total control of the system’ possible. As events, concerts and shows are becoming more complex, demand for total system control is increasing, and expectation is being accelerated by the on-going development of digital audio technology.” The plan, then, is that in coming years, Yamaha “will distribute NEXO speakers enabling dealers and customers one complete system solution through the integration of our product advances.”
“The alliance between Yamaha Corporation and Nexo will provide customers an excellent opportunity to realize what will become the future of professional audio product integration,” remarked Denis Baudier, worldwide sales director, Nexo S.A. “Both companies’ product know-how complement each other with Yamaha as an expert in DSP and Nexo as one of the leaders in professional audio speaker manufacture, able to provide the market complete system solutions that customers have long awaited.”
Yamaha manufactures and sells its own line of loudspeakers, aimed primarily at clubs and installation work, but Italia felt that the two lines would not compete: “Actually, just the opposite. Existing lines of Yamaha speakers and Nexo products do not overlap with very little exception. This alliance will increase opportunities for both companies to expand the markets they serve. We will co-develop a variety of products according to both companies’ business needs.”
Yamaha Commercial Audio Systems Division