Onkyo To Issue 760 Million Yen Convertible Bond To Intel Capital
Intel and Onkyo to Cooperate in Audio and Visual Technology Development to Accelerate PC and CE Convergence
TOKYO , Jan. 24, 2005 -- Onkyo Corporation announced today that its board of directors has approved the sale to Intel Capital of a convertible bond having a face value of approximately ¥760 million (approximately US$7.4 million at present exchange rates). The bond, which would be issued in February, subject to compliance with regulatory procedures and other customary conditions, would mature in March 2009 and would be convertible at Intel's option into Onkyo common stock. The proceeds would be used to extend Onkyo's home theatre technologies by developing and commercializing advanced audio and visual systems that complement Intel's digital home solutions.
The bond would be purchased using resources from Intel Capital's $200 million Intel Digital Home Fund, which supports Intel's initiatives to enable people to enjoy digital content – including music, photos, games and video – on multiple devices in the home and beyond.
In addition to the bond issuance, Onkyo also announced that Onkyo and Intel Corporation have agreed to work together on the technical development and co-marketing of new networked consumer electronics devices, based on industry standards, including Digital Living Network Alliance (DLNA) and Digital Transmission Content Protection over IP (DTCP-IP) specifications, which are intended to enable a new consumer experience in the digital home environment. Under the agreement, Intel would provide Onkyo with software technology and engineering resources for the development of these systems.
Onkyo currently makes advanced digital home theatre technology, which includes a network device that connects a PC and a digital stereo that incorporate high quality audio and visual technology.
Naoto Otsuki, chairman and CEO of Onkyo Corporation, said, “Joint efforts with Intel will enable both companies to promote effective development of truly integrated products that bridge the consumer electronics and computer industries, and help Onkyo establish a new category of products. The investment and technical cooperation will also make it possible for us to advance audio and visual capabilities that complement Intel's digital home solutions.”
, vice president and director of Intel Capital's International Sector, said, “The digital home represents a major market opportunity for electronic suppliers like Intel. Intel invests in leading companies around the world to create the ecosystem to realize our digital home vision. We are excited to work with leading consumer electronics companies like Onkyo to bring the complementary skills of a CE company and a computer company together.”
About Onkyo Corporation
Onkyo is the world's leading designer and manufacturer of home theatre with superior audio and visual technologies, as well as traditional analogue audio and speaker systems. Additional information about Onkyo is available at www.onkyo.com
About Intel Capital * Other names and brands may be claimed as the property of others.
Intel Capital, Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. For more information, visit www.intel.com/capital