High-end synthesizer firm Sequential boasted revenues of $18.3m last year, which hit all the right notes for audio products company Focusrite to buy it for $24m today.
The existing management and team will stay with the California based Sequential post-acquisition. Meanwhile, the company could receive up to $4m more, depending on its performance.
Focusrite’s board has intended the £18m purchase to boost share price-earnings sometime this year. Once the acquisition is completed, the music group will have net cash of around £12m.
It is the third major purchase by Focusrite since its flotation in December 2014, the first being the acquisition of ADAM Audio for £16.2m in July 2019, followed by Martin Audio in December 2019 for £39.2m.
“Sequential adds to our rich heritage of innovation and passionate people who are dedicated to making world-class solutions for musicians. For us, Sequential is a perfect fit, and a logical choice to add to our group,” Focusrite CEO, Time Carroll, said.
Buying Sequential means the music group has branched out in terms of its Novation branded instruments, with the possibility of working closely with Sequential and Novation’s research and development teams.
The CEO added that “while Sequential will continue to operate as a separate business unit with a very robust roadmap, we are all excited about the opportunities and possibilities that lie ahead with the collective expertise.”