Acquisition of Sheriff Technology Limited
For release: 07.00, 19 December 2023
Focusrite plc
("Focusrite" or "the Group")
Acquisition of Sheriff Technology Limited - a complementary acquisition within the Audio Reproduction business
Focusrite plc (AIM: TUNE), the global music and audio products group supplying hardware and software used by professional and amateur musicians and the entertainment industry, is pleased to announce the acquisition of Sheriff Technology Limited, trading as OutBoard ("OutBoard").
The initial cash consideration of £2.37 million will be funded from internal cash resources and existing facilities. There will also be an earn-out of up to £1.2 million payable in cash based on financial performance metrics including gross profits over a one-year period to 31st December 2024.
Founded in 2001 by Robin Whittaker and David Haydon, OutBoard is a UK-based company specialising in innovative entertainment technologies for a global client base. Operating under two sub-brands-TiMax and OutBoard-their products are vital for professionals in the audiovisual industry, particularly in live performances, event management, and the rapidly expanding sector of immersive sound experiences.
TiMax specialises in innovative immersive audio and show control technologies through the Soundhub and Tracker D4 products, catering for a wide range of applications including entertainment, events, branding, themed environments, and exhibition spaces. Their solutions are frequently used for Broadway and West End shows. We anticipate there will be opportunities to work with other Group brands in this space, notably Martin Audio.
Under the OutBoard brand, the business designs, manufactures and sells industry standard rigging control products for live events, together with enterprise-level safety test, preparation and quality management for global rental companies and venues. Their solutions are commonly used across international markets and feature at BST Hyde Park concerts, again alongside Martin Audio.
By extending the Group's activities into new products and markets, which complement its existing Audio Reproduction business, 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.
For the year ended 31st October 2023, OutBoard's unaudited revenue was £1.4 million with an EBITDA of £0.3 million, and gross assets of £0.52 million which includes cash of £0.12 million. The Board expects the acquisition to be earnings enhancing in the current financial year, excluding non-underlying transaction costs and amortisation of acquired intangibles.
Tim Carroll, CEO of Focusrite commented:
"The acquisition of OutBoard represents another strategic expansion within our Audio Reproduction business, enhancing our product range and market reach. OutBoard's innovative products, such as TiMax spatial audio and show control, align perfectly with our mission to deliver exceptional audio experiences within live environments. We are looking forward to integrating OutBoard's technologies and exploring new opportunities in this segment of the rapidly evolving audio industry."
Robin Whittaker and Dave Haydon, Founders and Directors of OutBoard added:
"Joining forces with Focusrite marks an exciting new chapter in OutBoard's story. We are thrilled to see our products reach new markets and benefit from Focusrite's global presence and brand recognition. Our commitment to innovation and quality remains steadfast, and we look forward to contributing to the Group's continued success."
- Ends -
Enquiries:
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Focusrite plc: |
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Tim Carroll (CEO) |
+44 1494 462246 |
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Sally McKone (CFO) |
+44 1494 462246 |
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Investec Bank plc (Nominated Adviser and Joint Broker) |
+44 20 7597 5970 |
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David Flin |
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Edward Knight |
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William Brinkley |
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Peel Hunt LLP (Joint Broker) |
+44 20 7418 8900 |
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Paul Gillam |
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Michael Burke |
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Adam Telling |
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Belvedere Communications |
+44 20 7653 8702 |
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John West |
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Llew Angus |
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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 thirteen established brands: Focusrite, Focusrite Pro, Novation, Ampify, ADAM Audio, Martin Audio, Optimal Audio, Linea Research Sequential, Oberheim, Sonnox, OutBoard and TiMax.
With a high-quality reputation and a rich heritage spanning decades, its brands are category leaders 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 synthesizers 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. Linea designs, develops, manufactures and sells market innovative professional audio equipment globally. Sequential designs and manufactures high end analogue synthesizers under the Sequential and Oberheim brands. Sonnox is a leading designer of innovative, high-quality, award-winning audio processing software plug-ins for professional audio engineers. TiMax specialises in innovative immersive audio and show control technologies. OutBoard manufactures and sells industry standard rigging control products for live events, together with enterprise-level safety test, preparation and quality management for global rental companies and venues.
The Company 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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