It's been a while since we've heard the name Comhear, but the San Diego-based company definitely left a mark in the audio industry for being the first to bring to market a 3D audio soundbar that could create a convincing personal audio field for both work and entertainment applications. Comhear successfully completed a crowdfunding campaign for its YARRA 3DX immersive audio soundbar using the patented MyBeam technology in 2018, which effectively was introduced to the market short after.
History was not kind to the pioneering concept, which we now recognize to be an early attempt that required much more to become a commercial success. In any case, Comhear continued to perfect its proprietary adaptive filtering and beam steering system that captures environmental room dynamics, processes data in real-time, and adjusts the audio output. The result, the company says today, is "dynamic immersive audio that delivers personalized audio experiences in multiple applications, including home entertainment, gaming, retailing, and location-based entertainment."
"The synergy between the two companies is compelling on many levels, with similar business models driven by audio IP, licensing and module sales," says Brett Moyer, CEO of WiSA. "We are targeting many of the same customers yet offer complementary solutions that address different use cases, providing WiSA’s sales team with more products to sell to our customers. We are both poised to penetrate the audio market through licensing our technologies. The acquisition of Comhear enhances WiSA’s position as a leader in immersive wireless audio technology, and we expect that the combined company will be well positioned to take market share in this growing market."
"With the shared vision to deliver next generation immersive audio, I am thrilled to join forces with WiSA and look forward to assuming the role of Chairman of the combined companies following the acquisition," says Andy Arno, Chairman of Comhear. "Our strategy to license and sell IP-embedded audio modules perfectly overlaps with WiSA’s business model, and our technology is a natural fit in WiSA’s ecosystem. The combined company can leverage WiSA’s many established customer relationships with new products along with additional market segments that have been the focus of Comhear."
Under the proposed acquisition, WiSA would acquire all shares of Comhear common stock in exchange for newly issued shares of WiSA common stock. The board of directors of the combined company is expected to consist of seven members, four of whom will be appointed by WiSA, including Moyer, and three of whom will be appointed by Comhear, including Arno as chairman.
The letter of intent for the proposed transaction is non-binding, and the parties expect to enter into one or more definitive agreements in June 2023. Completion of the transaction is subject to, among other matters, the completion of due diligence, the negotiation of definitive agreements providing for the proposed transaction, and satisfaction of various conditions to be negotiated therein and customary for transactions of the type contemplated, including, but not limited to, receipt of regulatory approvals, the provision of an audit of Comhear’s financial statements, and board of director and WiSA shareholder approvals.
The company expects to issue a proxy statement seeking shareholder approval for the proposed transaction in July 2023. However, there can be no assurance that the parties will successfully negotiate and enter into definitive agreements regarding the proposed transaction, or that the proposed transaction will be completed as currently contemplated, or at all.
Andrew Arno has over 30 years of experience handling a wide range of corporate and financial matters, including work as an investment banker and strategic advisor to emerging growth companies. Arno served as Chairman of C.E. Unterberg, Towbin, an investment bank, and currently serves on the boards of directors of Smith Micro Software and Independa, both software companies, Oncocyte, a medical diagnostics company, as well as Comhear.
www.comhearinc.com
www.wisatechnologies.com
