TUNE Focusrite Plc

TIDMTUNE

RNS Number : 7130F

Focusrite PLC

16 July 2019

Strictly embargoed until 13:00: 16 July 2019

Focusrite plc ("Focusrite" or "the Group")

Acquisition of Pro Audio GmbH including ADAM Audio GmbH

Total consideration of EUR18.0 million to be satisfied in cash

Focusrite plc, the global music and audio products company supplying hardware and software products used by professional and amateur musicians, today announces the acquisition of Pro Audio GmbH, which comprises ADAM Audio GmbH and its overseas subsidiaries ("ADAM") for a total consideration of EUR18.0 million (GBP16.2 million), to be funded in its entirety by cash from Focusrite's existing resources. This is a Substantial Transaction under the AIM Rules. The Board expects the acquisition to be earnings-enhancing in the first full year of consolidation.

ADAM is a Berlin, Germany based developer and global distributor of professional studio monitor loudspeakers. In the year to 31 December 2018 (unaudited) ADAM's turnover was EUR12.9 million, with an adjusted EBITDA of EUR1.7 million and profit before tax of EUR1.0 million. Net assets for ADAM as at 31 December 2018 were EUR4.1 million. Following the acquisition Focusrite will have cash balances of approximately GBP12 million.

The acquisition extends the Group's product offering to incorporate a comprehensive range of monitors well-aligned to its existing customer base, reflecting a strong fit with the previously communicated strategic aims to grow the core customer base, expand into new markets and increase lifetime value for customers.

ADAM was founded in 1999 and has developed into one of the world's leading studio monitor companies. The business has earned a worldwide reputation based on technological innovation and sells its products directly to retailers in the UK, Germany and US, as well as to over 75 other countries via distribution partners. It employs some 60 people worldwide, with offices in Germany, USA and China. Currently approximately half of the business's revenues are in Europe, a quarter in the US and the remainder in the ROW.

ADAM places great emphasis on product design and innovation and is recognised as a leader in the field of Electroacoustics. The core product range is made up of the recently-launched, more affordable T-Series for the wider market, the AX-Series, a great all-rounder for the professional studio set-up, and the flagship S-Series.

Following the transaction, it is expected that ADAM will continue to operate autonomously as a subsidiary of Focusrite from ADAM's headquarters in Berlin and both companies will work together to maximise the potential cross-selling opportunities for the businesses and other synergies.

Tim Carroll, Chief Executive Officer, commented:

"This is our first significant acquisition since becoming a publicly listed company and as previously communicated it was important that we identified a business that was a good fit for the Focusrite family of complementary brands. It was also key that the business we acquired was well-run and met our requirements of being profitable and cash generative. ADAM satisfies all these criteria and we believe its world leading product range of high quality studio monitors will sit well with our own suite of products. Like us, they have a focus on product design, innovation and development and I am delighted to welcome all their employees to our Group. Together we can continue to excite and empower our customers with world class tools for audio production and recording."

-ends-

Enquiries:

Focusrite plc: +44 1494 836301

Tim Carroll (CEO)

Jeremy Wilson (CFO)

   Panmure Gordon  (Nominated Adviser and Broker)                                    +44 20 7886 2500 

Freddy Crossley / Alina Vaskina

Erik Anderson

Belvedere Communications +44 20 3687 2756

John West

Llew Angus

Transaction advisers to Focusrite plc

Lincoln International as buyside financial adviser, PricewaterhouseCoopers as financial and tax due diligence provider and Luther Law (Luther Rechtsanwaltsgesellschaft) as legal adviser.

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

Notes to Editors

Focusrite plc is a global music and audio products group that develops and markets proprietary hardware and software products. Used by recording professionals and musicians alike, its solutions facilitate the high-quality production of recorded and live sound. The Focusrite Group trades under five established brands: Focusrite, Focusrite Pro, Novation, Ampify and now ADAM Audio.

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 offer 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 monitors have earned a worldwide reputation based on technological innovation in the field of loudspeaker technology. The product portfolio includes its T, AX, and S Series product ranges, aimed at different levels of musicians and recording engineers, as well as its subwoofer and headphone ranges.

The Focusrite Group has a global customer base with a distribution network covering approximately 160 territories. Focusrite is headquartered in High Wycombe, UK, with marketing offices in Los Angeles and Hong Kong. ADAM Audio has offices in Berlin, Nashville and Dongguan. Focusrite plc is traded on the AIM market, London Stock Exchange.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

ACQLLFSLDEIRLIA

(END) Dow Jones Newswires

July 16, 2019 08:00 ET (12:00 GMT)

Focusrite (LSE:TUNE)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024

Focusrite (LSE:TUNE)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024