(Alliance News) - Focusrite PLC on Tuesday said it has agreed to buy audio technology firm Sheriff Technology Ltd for up to GBP3.6 million.
Shares in the High Wycombe-based music and audio products firm rose 7.7% to 560.00 pence each in London on Tuesday afternoon. It has a GBP331.6 million market capitalisation.
Sheriff Technology, which trades at OutBoard, is a UK-based company specialising in entertainment technology. It operates under two sub-brands: TiMax and OutBoard.
"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," Focusrite said.
"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."
Focusrite will pay an initial GBP2.4 million, funded from internal cash resources and existing facilities, for OutBoard. There also will be an earn out of up to GBP1.2 million, payable in cash based on financial performance metrics over 2024.
In the financial year that ended October 31, OutBoard reported earnings before interest, tax, depreciation and amortisation of GBP300,000 on revenue of GBP1.4 million.
Focusrite said it expects the acquisition to be earnings enhancing in the current financial year, excluding non-underlying transaction costs and amortisation of acquired intangibles.
Chief Executive Tim Carroll said: "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."
By Sophie Rose, Alliance News senior reporter
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Focusrite (TUNE)