The Danish high-end audio-equipment manufacturer Bang & Olufsen (B&O) has signed an agreement to transfer its automotive audio business to Harman International Industries, the company announced Tuesday.

The agreement features a purchase price of approximately 1.17 billion Danish kroner (170 million US dollars), as well as future license payments containing minimum annual payments and a per unit fee for a minimum of 20 years, B&O said in a statement.

B&O CEO Tue Mantoni said that the transaction is believed to hold significant benefit for automotive customers, as well as for both companies.

B&O said all its automotive employees will be transferred to HARMAN to ensure the delivery of the level of unique innovation, visual design and craftsmanship.

Following the transfer of the existing automotive assets, B&O will focus on building a strong, consumer focused business, while accelerating B&O's brand presence in the automotive industry under HARMAN's leadership.

"The strategic focus and the financial implications of the cooperation will allow Bang & Olufsen to continue to invest in product innovation, retail and brand marketing to realize the full potential of the consumer business," Mantoni said.

The agreement remains subject to certain closing conditions, including regulatory approvals.

B&O's share price on Tuesday rose 30 percent at the Copenhagen Stock Exchange following the announcement.

Founded in 1925, B&O is well known for making high-end speakers and tv sets with design as good as their sound.

HARMAN is a major audio and infotainment equipment company, with over 80 percent of the world's luxury cars equipped with the company's premium audio and infotainment systems. (1 Danish kroner = 0.14 US dollar)