Focusrite PLC Acquisition of Sonnox Limited (2340K)

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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December 20, 2022 02:00 ET (07:00 GMT)

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