Private equity firm PAI Partners has reached an agreement with another PE firm, Ardian, to acquire a majority stake in Audiotonixa company that manufactures professional audio mixing consoles and related products.
Ardian will retain a minority stake in the Audiotonix together with the company's management team, PAI Partners and Audiotonix said in a separate announcement on Tuesday (April 23).
According to one reported in the Financial TimesThis deal is worth almost 2 billion pounds.
Headquartered in the UK, Audiotonix specializes in the design, engineering and manufacturing of audio equipment that delivers sound for a variety of formats including live tours and concerts, stage shows and major international live events, TV, films, music recordings, sporting occasions and places of worship.
Audiotonix products have been used in events including live tours by artists such as Coldplay And U2, sporting events such as super Bowl And FIFA World Cupand places like Las Vegas Globe.
Established in 2014, the company owns a portfolio of brands including Allen & Heath, DigiCo, Calrec, Solid state logic, Audio equipments, Slate ElectronicAnd can be heard. Audiotonix says these brands meet the specific needs of professional users and high-end audio engineers globally. Audiotonix's extensive distribution network covers the entire world 400 Distributors and value-added partners in more than 90 countries, with a significant presence in North America.
“With PAI, it was clear that this was the team and partner with whom we could take Audiotonix to the next level, while maintaining the passion and energy that has helped the team achieve the success it has in our industry.”
James Gordon, Audiotonix
Ardian acquired Audiotonix in March 2020. Under Ardian's ownership, Audiotonix acquired film and television sound specialists Audio Equipment, Slate Digital audio processing software, professional audio consoles and music production software Harrison, AI-powered audio processing software and, most recently, live sound software developer Fourier Audio.
“I want to thank Ardian for the trust and unwavering support of Audiotonix, our management team and employees. The team invested with us as soon as the Covid lockdown began and from the very first meeting we were aligned, ensuring Audiotonix emerged in a stronger position than before,” Director said Audiotonix executives James Gordon.
“As a manager, the most important challenge with a process like this is choosing the right partner moving forward, one who understands today's business and can provide a vision for what it could become. With PAI, it is clear that this is the team and partner with whom we can take Audiotonix to the next level, while maintaining the passion and energy that has made the team so successful in our industry.”
“We are delighted to partner with James Gordon and the exceptional Audiotonix management team, along with Ardian, on this next chapter of growth.”
Colm O'Sullivan And Neil McIlroyPAI Partners
PAI said its investment is aimed at capitalizing on the growing importance of the “experience economy,” where live events and engaging entertainment are increasingly valued. Additionally, their support will support Audiotonix's research and development efforts, brand synergies and drive organic growth through strategic mergers and acquisitions within the audio ecosystem more extensive.
“We are delighted to partner with James Gordon and the exceptional Audiotonix management team, along with Ardian, on this next chapter of growth. Audiotonix is well positioned to benefit from positive structural tailwinds in the experience economy and diverse professional audio environments – whether in live entertainment, audio, music or pre-installed professional sports,” he said. Colm O'Sullivan And Neil McIlroyboth Partners at PAI.
Olivier Personnaz, Director of Buyout UK & Managing Director, Ardian, added: “There has been a revolution in the way people enjoy and appreciate all forms of entertainment. When we first invested, we believed the team at Audiotonix was best placed to become a global leader in audio technology.
“There has been a revolution in the way people enjoy and appreciate all forms of entertainment. As our first investment, we believe the team at Audiotonix is best placed to become a global leader in audio technology.”
Olivier PersonnazArdian
“We backed management to invest in and build an R&D team larger than any competitor and one that consistently delivers technically and commercially superior products. We have also supported businesses expanding into the software sector through M&A. Today, Audiotonix is certainly the leader in a market where we see long-term tailwinds. We would like to thank the management team, led by James Gordon, for their outstanding performance, resilience and quick thinking. Audiotonix still has great potential to grow in a growing global market with the support of PAI.”
The transaction involved advisors from Goldman Sachs, Allen & Overy, McKinsey and PwC for Ardian. PAI receives advice from Weil Gotshal & Manges, McKinsey and Alvarez & Marsal. Free Corporate Finance, Macfarlanes and PwC served as advisors to Audiotonix.
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