Headphone maker Skullcandy Inc said it has bought Kungsbacka 57 AB for $18.6 million, giving it rights to directly sell products in most of Europe.
Kungsbacka held an exclusive distribution agreement for Skullcandy products in Europe through November 2013.
Skullcandy, which went public last month, said it expects the deal to add to earnings starting 2012.
Skullcandy, which raised $188 million in an upsized IPO in July, sponsors athletes and musicians, including Snoop Dogg, and competes with Sony Corp and privately held Bose Corp.
The company bought Kungsbacka from 57 North AB, which would still retain the right to sell Skullcandy-branded headphones in Sweden, Finland, Denmark and Norway though its consumer electronics channel till 2016.
Park City, Utah-based Skullcandy's shares closed at $16 on Tuesday on Nasdaq. They have lost 20 percent of their value since the IPO.
(Reporting by Himank Sharma in Bangalore; Editing by Maju Samuel)