D&M Acquires Escient

Consolidation is a fact of modern corporate life, but the consumer electronics industry has generally bucked this trend and remained relatively fragmented. Notable exceptions include Harman International and Rockford Corporation (which recently acquired loudspeaker manufacturer NHT)—now it's time to add D&M Holdings to that sparse list.

Two weeks ago, D&M, parent company of Denon and Marantz, announced that it was the high bidder for the ReplayTV (digital video recorder) and Rio (MP3) business units of the bankrupt SONICblue. One month previously D&M gobbled up McIntosh. Now, the company has announced another acquisition that it says will enhance its global digital strategy.

D&M reports that it has purchased the assets of US-based OpenGlobe and Escient Convergence, both subsidiaries of Escient Technologies, developer of the FireBall digital music managing system. According to D&M, these assets will form the new Escient Division, joining ReplayTV and Rio in D&M's Digital Networks North America (DNNA) group. The company says that DNNA will be expanded to further develop "core technologies" for the emerging entertainment-based home networking market.

D&M also used the acquisition announcement to reveal the new DNNA senior management team. Michael Seedman, a director of D&M Holdings, becomes chairman of DNNA, and Bernie Sepaniak, current Escient president and CEO, will remain as president of the Escient Division of DNNA. D&M Holdings anticipates that most of Escient's employees, including its technical team, will join DNNA.

D&M's Tatsuo Kabumoto says that his company's goal "is to provide access to entertainment anytime and anywhere throughout the home. [The Escient] acquisition furthers that strategy. We welcome Bernie Sepaniak and the Escient team of digital technology experts to DNNA, our new platform for launching innovative home entertainment devices."

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