TIDMTUNE
RNS Number : 3999E
Focusrite PLC
10 March 2022
For immediate release
Focusrite plc
( " Focusrite " or " the Group ")
Acquisition of Linea Research Holdings Ltd
Focusrite plc (AIM: TUNE), the global music and audio products
company supplying hardware and software used by professional and
amateur musicians and the entertainment industry, is pleased to
announce the acquisition of Linea Research Holdings Ltd ( " Linea "
), a UK based designer and manufacturer of professional audio
equipment.
Acquisition
The total consideration to be paid is GBP12.6 million for Linea,
which has approximately GBP1 million of cash. The initial
consideration is approximately GBP12.1 million of cash paid on
completion and the remaining GBP0.5m to be paid in cash subject to
certain performance conditions relating to the period ending May
2023. The initial consideration will be funded through a
combination of existing cash resources and a drawdown of existing
facilities with HSBC and NatWest. Following the acquisition of
Linea, the enlarged Group will have net cash of approximately GBP7
million.
Linea, headquartered in Letchworth Garden City, UK was formed in
2003 by a team of experienced professional audio specialists, and
they design, develop, manufacture and market innovative
professional audio equipment globally. Their products include a
range of ground-breaking amplifiers, including the world-renowned M
Series, together with Digital Signal Processors, audio networking
and software products. Two of the original founders, Davey Smalley,
Commercial Director, and Ben Ver, Engineering Director, will
continue to lead the business post-acquisition.
In the year ended 28 February 2022, Linea ' s unaudited revenue
was GBP5.2 million. EBITDA and EBIT, also unaudited, were GBP1.2
million. The Board expects the acquisition to be earnings enhancing
in the current financial year, excluding non-underlying transaction
costs, and thereafter.
Focusrite's subsidiary Martin Audio is a significant customer of
Linea - Linea technology is behind the successful iKON amplifier
series that powers Wavefront Precision line arrays seen on live
tours and at prestigious festivals such as British Summer Time in
Hyde Park.
The acquisition strengthens the critical source of supply of
amplifier modules for Martin Audio and will enable greater
integration of loudspeaker and amplifier technology in Martin Audio
products. However it is also the intention to continue to develop
the sales of Linea products through third-party distribution and to
OEM loudspeaker customers.
By extending the Group's business into new products and markets,
which complement its existing offerings, 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.
Tim Carroll, Chief Executive Officer, said:
"It is an absolute pleasure to welcome Davey, Ben and the entire
Linea team to the Focusrite Group. We know the team and the
business well given that Martin Audio is a major Linea customer.
This will lead to many synergies and is expected to improve gross
margin for both Martin Audio and the wider Group. Linea's products
are globally recognised as best in class and we are all excited
about the opportunities and possibilities that lie ahead with the
collective expertise of the Linea and Focusrite Group R&D and
sales teams."
In a joint statement Davey Smalley and Ben Ver, Directors at
Linea commented:
"We are delighted to be able to continue the Linea success story
from within the Focusrite Group. Having seen the support and growth
of the brands within the Group, we believe this provides us with a
secure foundation to further our R&D efforts and product
portfolio, strengthening the Linea brand while continuing
partnerships with our long-standing OEM partners. This can only be
a good thing for our customers, end users and very much our
staff."
- Ends -
Enquiries:
Focusrite plc +44 (0) 149 446 2246
Tim Carroll, Chief Executive Officer
Sally McKone, Chief Financial Officer
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
Edward Knight
Michael Burke
James Smith
Belvedere Communications +44 (0) 20 3687 2756
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 nine established brands: Focusrite, Focusrite
Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio,
Sequential and Linea.
With a high-quality reputation and a rich heritage spanning
decades, its brands are category lead-ers 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. Sequential designs and manufactures
high end analogue synthesizers. Linea designs, develops,
manufactures and sells market innovative professional audio
equipment globally.
The Focusrite 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, London Stock
Exchange.
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