Sennheiser has announced that it will end its joint venture with William Demant, to enable Sennheiser Communications’ business ventures to evolve into two different setups.
For more than 15 years, the joint venture – Sennheiser Communications – had 50/50 split ownership between Sennheiser and William Demant. In that time, it has successfully developed and promoted Sennheiser-branded portfolios in enterprise solutions, gaming and mobile music headphone segments.
“William Demant Holding A/S (William Demant) and Sennheiser electronic GmbH & Co. KG (Sennheiser) see great opportunities lying ahead in all three business segments of Sennheiser Communications A/S (Sennheiser Communications),” revealed the company.
To be able to fully capture these opportunities, both parties will 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,” said Sennheiser.
The joint venture has been a successful journey for both partners, during which they 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”, said Daniel Sennheiser, co-CEO at Sennheiser to which Søren Nielsen, President & CEO at William Demant, added: “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.”
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 in close partnership in order to ensure a seamless and smooth transition for employees, customers, suppliers and partners.