REG - Focusrite PLC - Acquisition of Sheriff Technology Limited

FocusriteAnnouncement

19/12/2023 07:00

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RNS Number : 2199X  Focusrite PLC  19 December 2023

For release: 07.00, 19 December 2023

Focusrite plc

("Focusrite" or "the Group")

Acquisition of Sheriff Technology Limited - a complementary acquisition within
the Audio Reproduction business

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 Sheriff
Technology Limited, trading as OutBoard ("OutBoard").

The initial cash consideration of £2.37 million will be funded from internal
cash resources and existing facilities.  There will also be an earn-out of up
to £1.2 million payable in cash based on financial performance metrics
including gross profits over a one-year period to 31(st) December 2024.

Founded in 2001 by Robin Whittaker and David Haydon, OutBoard is a UK-based
company specialising in innovative entertainment technologies for a global
client base. Operating under two sub-brands-TiMax and OutBoard-their products
are vital for professionals in the audiovisual industry, particularly in live
performances, event management, and the rapidly expanding sector of immersive
sound experiences.

TiMax specialises in innovative immersive audio and show control technologies
through the Soundhub and Tracker D4 products, catering for a wide range of
applications including entertainment, events, branding, themed environments,
and exhibition spaces. Their solutions are frequently used for Broadway and
West End shows. We anticipate there will be opportunities to work with other
Group brands in this space, notably Martin Audio.

Under the OutBoard brand, the business designs, manufactures and sells
industry standard rigging control products for live events, together with
enterprise-level safety test, preparation and quality management for global
rental companies and venues. Their solutions are commonly used across
international markets and feature at BST Hyde Park concerts, again alongside
Martin Audio.

By extending the Group's activities into new products and markets, which
complement its existing Audio Reproduction business, the acquisition is
strategically aligned with the Group's previously communicated aims of growing
the core customer base, expanding into new markets, and increasing lifetime
value for customers.

For the year ended 31(st) October 2023, OutBoard's unaudited revenue was £1.4
million with an EBITDA of £0.3 million, and gross assets of £0.52 million
which includes cash of £0.12 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.

Tim Carroll, CEO of Focusrite commented:

"The acquisition of OutBoard represents another strategic expansion within our
Audio Reproduction business, enhancing our product range and market reach.
OutBoard's innovative products, such as TiMax spatial audio and show control,
align perfectly with our mission to deliver exceptional audio experiences
within live environments. We are looking forward to integrating OutBoard's
technologies and exploring new opportunities in this segment of the rapidly
evolving audio industry."

Robin Whittaker and Dave Haydon, Founders and Directors of OutBoard added:

"Joining forces with Focusrite marks an exciting new chapter in OutBoard's
story.  We are thrilled to see our products reach new markets and benefit
from Focusrite's global presence and brand recognition. Our commitment to
innovation and quality remains steadfast, and we look forward to contributing
to the Group's continued success."

- 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 20 7597 5970
 David Flin
 Edward Knight
 William Brinkley
 Peel Hunt LLP (Joint Broker)                            +44 20 7418 8900
 Paul Gillam
 Michael Burke
 Adam Telling
 Belvedere Communications                                 +44 20 7653 8702
 John West
 Llew Angus

 

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 Focusrite Group trades under thirteen established brands:
Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal
Audio, Linea Research Sequential, Oberheim, Sonnox, OutBoard and TiMax.

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 synthesizers 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 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. TiMax specialises in innovative immersive audio and show control
technologies. OutBoard manufactures and sells industry standard rigging
control products for live events, together with enterprise-level safety test,
preparation and quality management for global rental companies and venues.

The Company 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, London Stock Exchange.

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