11th Jan 2022 14:57
(Alliance News) - The Vitec Group PLC announced on Tuesday it will acquire Portland-based microphone company Audix LLC and said it expects 2021 profit to be in-line with market expectations.
UK-based photography and video products maker Vitec will acquire Audix for up to GBP39.9 million in an all-cash deal, to be completed "shortly".
Audix will provide Vitec with a more specialist audio capture offering, owing to their research and development capabilities. It will also increase Vitec's total addressable market, expanding it to musicians and vocalists. Audix will benefit from Vitec's global distribution network and e-commerce channels.
"In addition, Audix brings state-of-the-art manufacturing facilities in the US which provides the opportunity for synergies," said Stephen Bird, Vitec's group chief executive.
Vitec expects the acquisition to enhance its operating margin and earnings per share, providing a return on investment from full-year 2023.
Richmond-based Vitec said on Thursday it expects adjusted profit before tax and net debt to be in line with the market consensus of at GBP42.0 million and GBP145.8 million, respectively, for 2021. This strong recovery is multiplied from an adjusted profit before tax of GBP5.5 million in 2020, where Covid-19 had caused major disruptions to film and TV production, retail, and live sports events.
However, it is still 13% down on pre-pandemic levels of adjusted profit, which was GBP48.0 million in 2019.
Full-year results will be released March 1, 2022.
The company's imaging division performed well in 2021, with high growth in professional photography equipment, and business-to-business sales. Its travel segment remained "subdued".
Original content creation and major sports events drove recovery in its Productions division. Component shortages suppressed revenue in the company's creative division, despite it receiving a high number of orders.
The rise of content creation including retail e-commerce, vloggers, influencers, subscription streaming services, and live video streaming have helped drive double-digit growth in all divisions.
"We have entered 2022 with a record opening order book and the outlook for the group is very positive, enhanced by the recent acquisitions, and despite some uncertainties, primarily around component shortages, " the company said.
Vitec's share price rose by 0.4% to 1,370.00 pence each on Tuesday afternoon in London.
By Elizabeth Winter; [email protected]
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