LONDON, UK: Focusrite plc (AIM: TUNE) introduced the acquisition of Sonnox Limited, a number one designer of audio processing software program plug-ins for skilled audio engineers.
The total money consideration to be paid for Sonnox is £9.1 million, which has roughly £2.1 million of cash, and can be funded from existing facilities with HSBC and NatWest. Following the acquisition, the enlarged Group will have net debt of roughly £13 million.
For the year ended 31 March 2022, Sonnox’s unaudited income was £2.4 million with revenue earlier than tax of £0.9 million, and gross assets of £3 million. The Board expects the acquisition to be earnings enhancing within the present monetary year, excluding non-underlying transaction prices and amortisation of acquired intangibles.
Based close to Oxford, Sonnox is a well-established and acclaimed model within the worldwide audio industry. Its vary of innovative, excessive quality, award-winning processing software program is utilized in a variety of audio applications collectively with mixing for music production, live sound, broadcast, TV & Film, and even scientific and forensics projects.
The enterprise is wholly owned by Rod Densham, who was one of many co-founders of the “Sony Oxford” start-up that designed the legendary Oxford OXF-R3 for Sony Corporation.
The console was put in in main recording studios worldwide and have become widely accepted because the primary ‘musical’ sounding digital console.
As Digital Audio Workstations running on computer systems became the usual medium for audio to be recorded and edited, many hardware companies, collectively with Sony, started porting their hardware sign processing to a “plug-in” format that could be utilized in these workstations.
Rod led the team at Sony that ported their audio digital sign processing algorithms into plug-ins, which he then acquired from Sony in 2007 to form Sonnox.
Since then, they’ve continued to construct on the Sony Oxford heritage along with including a vary of Toolbox plug-ins designed for speed and simplicity. Rod and his entire team of sixteen will stick with the enterprise post acquisition.
Today Sonnox’s software program is sold through a longtime gross sales channel of greater than 100 sellers worldwide, along with its personal e-commerce site. Sales are particularly strong within the USA, Japan, and the UK. Sonnox has protected its mental property through software program copyrights, worldwide trademarks and patents.
The acquisition provides audio software program to the Group’s rising portfolio, particularly complementing our existing choices within the recording space, and is aligned with our beforehand communicated strategic goals of rising the core buyer base, increasing into new markets, and increasing lifetime worth for our customers.
Tim Carroll, Chief Executive Officer, said: “This is our first acquisition within the audio software program market, and it’s an absolute pleasure to welcome Rod and his entire team to the Focusrite Group. Sonnox’s merchandise are globally recognised as best in class, making them a pure slot in our stable, and we’re all enthusiastic about the alternatives and possibilities that lie forward with the collective experience of our mixed gross sales and R&D teams.”
Rod Densham, Founder and Managing Director of Sonnox added: “Sonnox is in a strong monetary position, increasing our buyer base and consistently delivering profit.
We believe that by becoming a member of Focusrite with their scale, industry experience and vary of premium brands, we can proceed to grow, and ship innovation and excellence to audio hobbyists and professionals alike. Focusrite have a confirmed track record of achieving this in our industry, and we’re very excited to become a half of their Group.”