Bose Corp’s decision to purchase McIntosh Group, an important player in the high-end audio space, is reminiscent of Samsung picking up Harman in 2016. Audiophiles never thought the world would get a ‘BoseIntosh’ but it’s happening.

The acquisition also includes McIntosh subsidiary Sonus Faber and with all things clicking into place, it “opens new opportunities in the automotive sector” as both companies plan to work together to expand their in-car audio offerings. “By leveraging Bose’s 40-plus years of experience in automotive audio, and McIntosh Group’s legacy of performance and design, the brands will work together to expand their research and continue to engineer authentic in-car experiences that redefine automotive sound,” reads a statement.

At the moment, nothing changes for McIntosh, which will continue to manufacture high-end audio equipment out of its headquarters in Binghamton, New York while Sonus Faber makes high-end speakers by hand in Italy. The purchase allows Bose an entry into the high-end luxury audio market.

A few of McIntosh's audio offerings

“There is this opportunity for luxury, where the consumer is more discerning, really interested in the heritage and the story, and that handcrafted nature,” Bose CEO Lila Snyder told CNBC.

McIntosh Group has been owned by investment firms for many years now, so the arrival of Bose is a good sign. Bose continues to generate annual revenues in the billions, so it’s definitely not going anywhere and the brand name has immense value. So the new setup should last for a very long time and Bose will be interested in growing the brand.

McIntosh was previously owned by Highlander Partners, a Dallas-based private equity firm. The company has been making high-end amplifiers and other audio equipment since 1949, and one of its devices can cost tens of thousands of dollars. Take the example of a pair of Sonus Faber speakers, it can cost $140,000.

Snyder has not offered a price for the deal but it shows how the reputed brand is navigating the audio segment. Luxury audio (products generally cost more than $5,000) grew by a massive 12 per cent in 2023 to about $2.8 billion in total sales, according to an estimate from Futuresource Consulting.

The deal will also help Bose market its products, which are already expensive. Take the case of Bose headphones that can easily cost $350. At the moment Bose competes with the likes of Apple, which bought Beats Electronics for $3 billion in 2014 and released the AirPods in 2016, targeting the premium headphone market.

According to reports, Snyder has not ruled out the possibility of Bose producing McIntosh-branded headphones or other products. “We do think there’s a real opportunity around wearables in the luxury and high-performance space as well, which is something that we would expect you to see from us down the road,” Synder told CNBC.

McIntosh already designs a sound system for some Jeep models while Bose’s audio offerings are found within a wider range of cars from automakers like Chevy, Honda, Nissan and Cadillac.

There won’t be any changes immediately. Bose says it will continue to launch its headphones, speakers, soundbars, and in-car audio, while McIntosh and Sonus Faber will keep developing premium audio products, including amplifiers, loudspeakers, and turntables.

Consolidation in the audio industry is now new. Masimo picked up brands like Polk, Bowers & Wilkins, Denon, and more when it bought Sound United in 2022. Samsung acquired JBL and Harman Kardon's parent company, Harman, in 2016, and Sony bought the headphone maker Audeze last year. Voxx International owns audio brands like Klispch, Pioneer and Onkyo.

“Over the last six decades we’ve delivered the best premium audio experiences possible; now, with McIntosh Group in our portfolio, we can unlock even more ways to bring music to life in the home, on the go and in the car,” said Snyder.