16th Jul 2019 13:36
(Alliance News) - Focusrite PLC on Tuesday said it bought Pro Audio GmbH, which comprises ADAM Audio GmbH and its overseas subsidiaries, for a total consideration of EUR18.0 million.
The music and audio products company said it intends to fund the purchase by cash from its existing resources. Focusrite expects the acquisition to be earnings-enhancing in the first full year of consolidation.
In 2018, Pro Audio's turnover was EUR12.9 million, with an adjusted earnings before interest, taxes, depreciation, and amortization of EUR1.7 million and pretax profit of EUR1.0 million.
The acquisition extends Focusrite's product offering, it said, reflecting strategic aims to grow the core customer base, expand into new markets and increase lifetime value for customers.
Following the transaction, it is expected that Pro Audio will continue to operate autonomously as a subsidiary of Focusrite from Pro Audio's headquarters in Berlin, Germany.
"This is our first significant acquisition since becoming a publicly listed company and as previously communicated it was important that we identified a business that was a good fit for the Focusrite family of complementary brands. It was also key that the business we acquired was well-run and met our requirements of being profitable and cash generative," said Focusrite Chief Executive Tim Carroll.
"Together we can continue to excite and empower our customers with world class tools for audio production and recording," added Carroll.
Focusrite shares were trading 0.4% higher on Tuesday in London at 523.00 pence each.
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