MINNEAPOLIS—Seeking to strengthen its position in U.S. markets, Bosch GmbH, a German auto parts company, plunked down $420 million to buy Minneapolis-based audio, security, communications and wireless systems supplier Telex Communications Holding Inc.
Telex reported revenue of $308 million in 2005, generated from equipment sales of several brands of products including ElectroVoice, Dynacord, Midas, Klark Teknik, Telex and RTS. Bosch said Telex will become part its Security Systems division, explaining that Telex systems are installed in a wide range of applications, such as large stadiums and airport projects, where customers are increasingly asking for turnkey solutions combined with security systems.
“With the acquisition of Telex, Bosch Security Systems can significantly expand its communications systems product offerings and penetrate the professional audio equipment market,” stated Peter Marks, board of management member at Bosch. “The strength of the Telex distribution network will enhance our worldwide market position as a provider of comprehensive security and communications systems. At the same time, we obtain a leading position in the American market.”
In 2005, Bosch Security Systems generated sales of about $1.25 billion from its intrusion and fire alarm systems, video surveillance, access control and communications systems business. With some 7,800 employees, the division does business in the European, North American and Asia-Pacific markets.
Neither company commented in their joint press release as to the fate of Telex’s 2,000 employees.
