TIDMTUNE
RNS Number : 6491W
Focusrite PLC
27 April 2021
Strictly embargoed until 07.00, 27 April 2021
Focusrite plc
( " Focusrite " or " the Group ")
Acquisition of Sequential LLC
Focusrite plc (AIM: TUNE), the global music and audio products
company, today announces the acquisition of Sequential LLC ( "
Sequential " ), a California based, world-renowned, high-end
synthesizer company. The existing management and team will stay
with the business post acquisition.
The total consideration to be paid is $24 million (c GBP 18
million) for the business, with initial consideration of
approximately $20 million of cash paid on completion and the
remaining $4 million to be paid subject to certain performance
conditions. The initial consideration will be funded through a
combination of existing cash resources and an GBP 8m drawdown on an
existing facility of GBP 40 million with HSBC and NatWest.
Following the acquisition of Sequential, the Group will have net
cash of approximately GBP12 million.
Sequential is headquartered in San Francisco, California in the
historically and culturally rich North Beach neighbourhood from
where it will continue to operate and be led by legendary
instrument designer and Grammy
winner Dave Smith, who founded Sequential Circuits in 1974.
The Sequential portfolio of high end analogue synthesizers
dramatically expands the footprint the Group has with its Novation
branded instruments , offering more premium priced solutions for
electronic artists. The Group also sees the possibility of future
synergies between the Sequential and Novation's R&D teams to
bring new innovative products to market that will further the
Group's mission of "removing barriers to creativity".
In the year to 31 December 2020, Sequential ' s unaudited
turnover was $18.3 million. EBITDA and EBIT, also unaudited, were
$3.5 million. The Board expects the acquisition to be enhancing to
earnings per share in the current financial year, excluding
non-underlying transaction costs, and thereafter.
This is the third major acquisition made by Focusrite since its
flotation in December 2014, the first being the acquisition of ADAM
Audio GmbH for a total consideration on GBP 16.2 million in July
2019, followed by Martin Audio Ltd in December 2019 for a total
consideration of GBP39.2 million.
By extending the Group's business into new products and markets,
which complement its existing offerings, the acquisition is
strategically aligned with the Company's previously communicated
aims of growing the core customer base, expanding into new markets
and increasing lifetime value for customers.
Tim Carroll, Chief Executive Officer, commented:
"It is an absolute pleasure to welcome Dave and the entire
Sequential team to the Focusrite Group. Sequential adds to our rich
heritage of innovation and passionate people who are dedicated to
making world class solutions for musicians. For us, Sequential is a
perfect fit, and a logical choice to add to our Group. While
Sequential will continue to operate as a separate business unit
with a very robust roadmap , we are all excited about the
opportunities and possibilities that lie ahead with the collective
expertise of the Sequential and Novation R&D teams."
Phil Dudderidge, Chairman, commented:
"We are excited and pleased to add Sequential's instruments and
pedigree to Focusrite Group's portfolio of world-class audio and
music production tools. Dave Smith's history as an innovator speaks
for itself. From his creation of the world's first fully
programmable polysynth, the Prophet 5, to his co-invention of MIDI,
Dave has literally changed the world of music several times. We are
looking forward to continuing his history of innovation and
expanding the global market for Sequential's instruments."
Dave Smith, Founder of Sequential, commented:
" With Focusrite, we have found an ideal home and a perfect
cultural and technological fit. Phil and his team have a long
history of quality, vision, and focus on what musicians and audio
professionals really want. We're excited to join such an industry
powerhouse and contribute to our mutual success. I expect great
things. "
-ends-
Enquiries:
Focusrite plc: +44 1494 462246
Tim Carroll (CEO)
Sally McKone (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
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 seven brands: Focusrite, Focusrite
Pro, Novation, Ampify, ADAM Audio, Martin Audio and Optimal
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 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. Optimal Audio is a commercial audio
brand offering a one-stop solution of control, amplification, and
loudspeakers for small to medium-sized commercial installations
with a focus on multi-zone venues.
The Focusrite Group has offices in four continents and a global
customer base with a distribution network covering approximately
160 territories.
Focusrite plc is traded on the AIM market, London Stock
Exchange.
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