REG - Focusrite PLC - Acquisition of Sonnox Limited

FocusriteAnnouncement

20/12/2022 07:00

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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 £9.1 million, which has
approximately £2.1 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 £13 million.

For the year ended 31 March 2022, Sonnox's unaudited revenue was £2.4 million
with profit before tax of £0.9 million, and gross assets of £3 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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