(Sharecast News) - AIM-listed audio products specialist Focusrite said on Tuesday that it has snapped up smaller rival Sonnox.
Focusrite, which supplies both professional and amateur musicians with hardware and software, will pay £9.1m in cash for Oxfordshire-based Sonnox, which designs audio processing software plug-ins for audio engineers.
Focusrite said the business, which is owned by founder and managing director Rod Densham, was a "well-established and acclaimed brand" which would complement its existing offerings in the recording space.
The deal will be funded through existing facilities with HSBC and NatWest, leaving the enlarged group with net debt of £13m post completion.
Tim Carroll, chief executive, said: "This is our first acquisition in the audio software market. Sonnox's products are globally recognised as best-in-class, making them a natural fit, and we are all excited about the opportunities and possibilities that lie ahead with the collective expertise of our combine sales and R&D teams."
Densham, who will continue to run the business along with all 16 of his staff, added: "Sonnox is in a strong financial position, expanding our customer base and consistently delivering profit. We believe that by joining Focusrite, with its scale, industry expertise and range of premium brands, we can continue to grow."
James Lockyer, analyst at Peel Hunt, said: "This is Focusrite's first audio software acquisition, diversifying its offering to include toolbox plug-ins and thus creating cross-sell opportunities.
"Rod Densham has built a formidable reputation, with eight of the ten best-selling albums of the century crediting Sonnox users in the role of engineer, producer, writer/co-writer or mixer running."
Focusrite (TUNE)