TIDMTUNE
RNS Number : 2340K
Focusrite PLC
20 December 2022
Strictly embargoed: 07.00, 20 December 2022
Focusrite plc
( " Focusrite " or " the Group")
Acquisition of Sonnox Limited
Focusrite plc (AIM: TUNE), the global music and audio products
group supplying hardware and software used by professional and
amateur musicians and the entertainment industry, is pleased to
announce the acquisition of Sonnox Limited ("Sonnox"), a leading
designer of audio processing software plug-ins for professional
audio engineers.
The total cash consideration to be paid for Sonnox is GBP9.1
million, which has approximately GBP2.1 million of cash, and will
be funded from existing facilities with HSBC and NatWest. Following
the acquisition, the enlarged Group will have net debt of
approximately GBP13 million.
For the year ended 31 March 2022, Sonnox's unaudited revenue was
GBP2.4 million with profit before tax of GBP0.9 million, and gross
assets of GBP3 million. The Board expects the acquisition to be
earnings enhancing in the current financial year, excluding
non-underlying transaction costs and amortisation of acquired
intangibles.
Based near Oxford, Sonnox is a well-established and acclaimed
brand in the global audio industry. Its range of innovative, high
quality, award-winning processing software is used in a wide range
of audio applications including mixing for music production, live
sound, broadcast, TV & Film, and even scientific and forensics
projects.
The business is wholly owned by Rod Densham, who was one of the
co-founders of the "Sony Oxford" start-up that designed the
legendary Oxford OXF-R3 for Sony Corporation. The console was
installed in major recording studios worldwide and became widely
accepted as the first 'musical' sounding digital console. As
Digital Audio Workstations running on computers became the standard
medium for audio to be recorded and edited, many hardware
companies, including Sony, began porting their hardware signal
processing to a "plug-in" format that could be utilized in these
workstations. Rod led the team at Sony that ported their audio
digital signal processing algorithms into plug-ins, which he then
acquired from Sony in 2007 to form Sonnox. Since then, they have
continued to build on the Sony Oxford heritage together with adding
a range of Toolbox plug-ins designed for speed and simplicity. Rod
and his entire team of 16 will stay with the business post
acquisition.
Today Sonnox's software is sold through an established sales
channel of more than 100 dealers worldwide, together with its own
e-commerce site. Sales are particularly strong in the USA, Japan,
and the UK. Sonnox has protected its intellectual property through
software copyrights, international trademarks and patents.
The acquisition adds audio software to the Group's growing
portfolio, specifically complementing our existing offerings in the
recording space, and is aligned with our previously communicated
strategic aims of growing the core customer base, expanding into
new markets, and increasing lifetime value for our customers.
Tim Carroll, Chief Executive Officer, said: "This is our first
acquisition in the audio software market, and it is an absolute
pleasure to welcome Rod and his entire team to the Focusrite Group.
Sonnox's products are globally recognised as best in class, making
them a natural fit in our stable, and we are all excited about the
opportunities and possibilities that lie ahead with the collective
expertise of our combined sales and R&D teams."
Rod Densham, Founder and Managing Director of Sonnox added: "
Sonnox is in a strong financial position, expanding our customer
base and consistently delivering profit. We believe that by joining
Focusrite with their scale, industry expertise and range of premium
brands, we can continue to grow, and deliver innovation and
excellence to audio hobbyists and professionals alike. Focusrite
have a proven track record of achieving this in our industry, and
we are very excited to become part of their Group."
- Ends -
Enquiries:
Focusrite plc
Tim Carroll (CEO) +44 1494 462246
Sally McKone (CFO) +44 1494 462246
Investec Bank plc (Nominated Adviser and
Joint Broker) +44 (0) 20 7597 5970
David Flin / William Brinkley / Charlotte
Young
Peel Hunt LLP (Joint Broker) +44 (0) 20 7418 8900
Paul Gillam / Michael Burke / James Smith
Belvedere Communications (Financial PR) +44 (0)20 3008 6864
John West / Llew Angus
Transaction advisers to Focusrite plc
Evelyn Partners as financial and tax due diligence provider and
Stephenson Harwood LLP as legal adviser.
Notes to Editors
Focusrite plc is a global audio products group that develops and
markets proprietary hardware and software products. Used by audio
professionals and musicians, its solutions facilitate the
high-quality production of recorded and live sound. The Group
trades under eleven established brands: Focusrite, Focusrite Pro,
Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio, Linea
Research, Sequential, Oberheim and now Sonnox.
With a high-quality reputation and a rich heritage spanning
decades, its brands are category leaders in the music-making and
audio recording industries. Focusrite and Focusrite Pro design and
manufacture audio interfaces and other products for recording
musicians, producers and professional audio facilities. Novation
and Ampify products are used in the creation of electronic music,
from synthesisers and grooveboxes to industry-shaping controllers
and inspirational music-making apps. ADAM Audio studio monitors
have earned a worldwide reputation based on technological
innovation in the field of studio loudspeaker technology. Martin
Audio designs and manufactures performance-ready systems across the
spectrum of sound reinforcement applications. Linea Research
designs, develops, manufactures and sells market innovative
professional audio equipment globally. Sequential designs and
manufactures high end analogue synthesizers under the Sequential
and Oberheim brands. Sonnox is a leading designer of innovative,
high quality, award-winning audio processing software plug-ins for
professional audio engineers.
The Group has offices in four continents and a global customer
base with a distribution network covering approximately 240
territories.
Focusrite plc is traded on the AIM market of the London Stock
Exchange.
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