Focusrite PLC (LON: TUNE) have announced the acquisition of Martin Audio Ltd in a £39 million deal.
Focusrite plc is an English audio equipment manufacturer based in High Wycombe, England. The firm designs and markets audio interfaces, microphone preamps, consoles, analogue EQs and Channel strips, and digital audio processing hardware and software.
Shares in Focusrite jumped 1.27% on the announcement to 605p. 19/12/19 11:08BST.
Martin Audio has its headquarters in High Wycombe, and designs, makes and distributes professional sound systems.
In 2018, Martin delivered revenue of £21.7 million with earnings before interest, tax, depreciation, and amortisation of £2.6 million.
Focusrite will pay £39.2 million for the business, using existing cash combined with a loan from HSBC and Natwest, who are a part of Royal Bank of Scotland Group plc.
“The acquisition of Martin Audio is a clear demonstration of our strategic aim to expand into complementary new markets. Martin Audio is an established brand with solid financials that can instantly add value to the enlarged group. Just as importantly, the business is culturally aligned with our existing operations,” said Focusrite Chief Executive Tim Carroll.
“They will have an important role to play as we continue to focus on our goal of enriching lives through music, by removing barriers to creativity; from that first spark of musical inspiration, to delivering an emotionally charged performance on stage,” he continued.
“The Martin Audio team share our hunger to innovate and our passion as music and sound enthusiasts. Their close geographical proximity to Focusrite will help significantly in the development of future cross selling and marketing strategies.”
Certainly, this seems like a good piece of business for both parties. Martin in the deal have backing from a reputable firm, who have a long list of industry experiences.
Shareholders of Focusrite can remain optimistic as Martin have shown potential to be a profitable asset for the firm, if the two firms can develop a strategy going forward, this could be a very shrewd piece of business.