Japanese Pioneer said on Tuesday that it would sell its disc-jockey equipment business to private equity firm KKR & Co LP for about 59 billion yen ($550 million). Pioneer and KKR announced the signing of a share purchase agreement under which Pioneer’s business division that engages in the development, manufacturing and sale of DJ equipment will be spun off into a new company, Pioneer DJ, which will be jointly owned by Pioneer (14.95%) and KKR (85.05%).

Pioneer’s DJ equipment business develops, manufactures and sells equipment for DJs, including DJ players, mixers, controllers, headphones and speakers. It is a leader in the DJ equipment market with strong brand image, reputation for technological differentiation, and high profitability.

The two companies will jointly leverage their respective business resources, brand power and technological capability, as well as global technology and media industry investment experience, and networks for the further growth of
Pioneer DJ.

"As we accelerate our efforts to concentrate management resources on our car electronics business, Pioneer has been seeking the optimal partner
to further the globalization of our DJ equipment business and expand the brand. We are pleased to have reached an agreement with KKR on the purchase of Pioneer DJ. KKR has a wealth of experience in the technology and
media industry globally, and we are confident it has the expertise to drive Pioneer DJ forward. Pioneer will retain 14.95% of the voting rights in Pioneer DJ and we will maintain a framework for cooperation to ensure the future growth of the company," said Susumu Kotani, Representative Director, President and CEO of Pioneer.

Subject to approval by the relevant authorities and other customary closing conditions, the agreements are expected to be completed by March 2015.

Pioneer has been selling off non-core assets to focus on its automotive electronics business -- In-vehicle Network Connectivity and car
AV equipment.

On Friday, the company said it would sell its home audio-visual business to audio equipment maker Onkyo.

"Our goal for the home AV and DJ equipment businesses is to work with outside partners to expand the businesses and increase brand value," Pioneer said.

Pioneer expects to record extraordinary income of approximately 55 billion yen due to the Transfer of the DJ equipment business and it may revise its earnings forecast

The Japanese company also announced headcount reductions of approximately 800 positions in Japan and approximately 700 positions overseas, for a total reduction of approximately 1,500. It will reduce its consolidated headcount by 10%, as well as the number of executive officers.