Oxfordshire audio software firm acquired at 10.1x profits
Tue, 20 Dec 2022 | BUSINESS SALE
Oxfordshire-based audio processing software design company Sonnox has been acquired by listed music products firm Focusrite in a deal valued at £9.1 million. The acquisition represents a 10.1x multiple of Sonnox’s pre-tax profits of £0.9 million for the year ending March 31 2022, generated on revenue of around £2.4 million.
Sonnox, which is based in Wantage, Oxfordshire, is a well-established brand in the global audio industry, with the firm’s products being used across a wide variety of audio applications, including TV and film, live sound, broadcast, music production mixing and scientific and forensic projects.
The company’s software is sold via Sonnox’s own e-commerce site, as well as through a sales channel comprising more than 100 global dealers.
The company has been acquired for a total cash consideration of £9.1 million, which will be funded via Focusrite’s existing facilities with NatWest and HSBC. Post-acquisition, co-founder Rod Densham, who previously wholly owned the company, and his entire team of 16 staff will remain with the business.
Focusrite CEO Tim Carroll commented: "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."
Sonnox founder and Managing Director Rod Densham 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."
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