LONDON, UK: Focusrite plc (AIM: TUNE), the worldwide music and audio merchandise firm supplying hardware and software program utilized by skilled and amateur musicians and the leisure industry, introduced the acquisition of Linea Research Holdings Ltd, a UK based designer and producer of skilled audio equipment.
The total consideration to be paid is £12.6 million for Linea Research Holdings, which has roughly £1 million of cash. The preliminary consideration is roughly £12.1 million of money paid on completion and the remaining £0.5m to be paid in money topic to sure efficiency conditions relating to the interval ending May 2023.
The preliminary consideration will be funded through a mixture of existing money resources and a drawdown of existing facilities with HSBC and NatWest. Following the acquisition of Linea, the enlarged Group will have net money of roughly £7 million.
Linea, headquartered in Letchworth Garden City, UK was formed in 2003 by a team of skilled skilled audio specialists, and they design, develop, manufacture and market innovative skilled audio equipment globally.
Their merchandise include a vary of ground-breaking amplifiers, collectively with the world-renowned M Series, along with Digital Signal Processors, audio networking and software program products.
Two of the unique founders, Davey Smalley, Commercial Director, and Ben Ver, Engineering Director, will proceed to lead the enterprise post-acquisition.
In the year ended 28 February 2022, Linea’s unaudited income was £5.2 million. EBITDA and EBIT, additionally unaudited, were £1.2 million. The Board expects the acquisition to be earnings enhancing inside the present monetary year, excluding non-underlying transaction costs, and thereafter.
Focusrite’s subsidiary Martin Audio is a significant buyer of Linea – Linea technology is behind the profitable iKON amplifier series that powers Wavefront Precision line arrays seen on live excursions and at prestigious festivals such as British Summer Time in Hyde Park.
The acquisition strengthens the critical supply of provide of amplifier modules for Martin Audio and can allow greater integration of loudspeaker and amplifier technology in Martin Audio products.
However it’s additionally the intention to proceed to develop the gross sales of Linea merchandise through third-party distribution and to OEM loudspeaker customers.
By extending the Group’s enterprise into new merchandise and markets, which complement its existing offerings, the acquisition is strategically aligned with the Group’s beforehand communicated goals of rising the core buyer base, increasing into new markets, and increasing lifetime worth for customers.
Tim Carroll, Chief Executive Officer, said: “It is an absolute pleasure to welcome Davey, Ben and the entire Linea team to the Focusrite Group. We know the team and the enterprise well given that Martin Audio is a main Linea customer. This will result in many synergies and is anticipated to enhance gross margin for each Martin Audio and the broader Group. Linea’s merchandise are globally recognised as best in class and we’re all enthusiastic about the alternatives and possibilities that lie forward with the collective experience of the Linea and Focusrite Group R&D and gross sales teams.”
In a joint assertion Davey Smalley and Ben Ver, Directors at Linea commented: “We are delighted to have the ability to proceed the Linea success story from inside the Focusrite Group. Having seen the support and growth of the manufacturers inside the Group, we believe this provides us with a safe basis to additional our R&D efforts and product portfolio, strengthening the Linea model whereas persevering with partnerships with our long-standing OEM partners. This can solely be a good factor for our customers, finish customers and really a lot our staff.”
Focusrite plc is a global audio merchandise group that develops and markets proprietary hardware and software program products. Used by audio professionals and musicians, its options facilitate the high-quality manufacturing of recorded and live sound. The Focusrite Group trades under 9 established brands: Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio, Sequential and Linea.
www.focusriteplc.com