Buckinghamshire’s Focusrite acquires Oxfordshire’s Sonnox Limited for £9.1m
Music and audio products company Focusrite has acquired audio processing software designer Sonnox Limited for a total cash consideration of £9.1 million.
The acquisition, which will be funded from High Wycombe-based Focusrite’s existing facilities with HSBC and NatWest, will leave the enlarged group with net debt of around £13 million after taking on Sonnox’s cash of approximately £2.1 million.
Financial and tax due diligence on the transaction for Focusrite was provided by Evelyn Partners, with Stephen Harwood LLP acting as legal advisor.
EvolutionCBS marketed Sonnox prior to the acquisition and identified potential buyers, before representing the company throughout the due diligence process, led by Senior Client Director Steve Barry, who is quoted below.
Sonnox reported unaudited revenues for the year ended 31 March 2022 of £2.4 million, and profit before tax of £0.9 million with gross assets of £3 million. Focusrite’s board expects the acquisition to enhance its earnings for the current financial year.
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Sonnox is an established brand wholly owned by Rod Densham, who co-founded Sony Oxford, a start-up with designed the Oxford OXF-R3 for Sony, which became widely accepted as the first ‘musical’ sounding digital console.
The acquisition adds audio software to the Group's growing portfolio, specifically complementing its existing offerings in the recording space, and is aligned with Focusrite’s aims of growing its core customer base, expanding into new markets, and increasing lifetime value for its customers.
Tim Carroll, Chief Executive Officer, said: "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."
Rod Densham, Founder and Managing Director of Sonnox 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."
EvolutionCBS Client Director Steve Barry, who led the transaction, commented: “We are delighted to have yet again delivered such an outstanding result for our Client. Interest in what Rod and the team there have so successfully created over the years was amazingly strong - with serious interest coming from both the Americas and from across multiple ‘suitors’ within mainland Europe.
"In the end, the potential synergies being unlocked between Sonnox and their successful acquirer were just too powerful to ignore and this transaction will deliver great benefits for both parties. Specifically for Rod and his team, it enables them to move forward with global backing as they continue to develop the world famous Sonnox brand - which was always the most powerful driver at the heart of his thinking - whilst personally giving him the opportunity to unlock the value created in the business over so many years.”
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