As part of the deal, the South Korean tech will supply high-end organic light-emitting diode (OLED) televisions to the Danish maker of premium hi-fi systems.
The partnership will help solve a strategic challenge as Bang & Olufsen will achieve technological capabilities and scale needed to improve the profitability of the company. The partnership will allow Bang & Olufsen to focus on core competencies within acoustics and design, while further optimising the company's supply chain, development, production and service.
The first OLED TV produced by LG for Bang & Olufsen as a result of the partnership is expected to be launched in 2017. Further, the partnership involves collaboration in other areas such as license and product bundle activities.
Last month, LG Electronics launched its latest flagship smartphone, the G5, which features an advanced stereo system, jointly developed by Bang & Olufsen.