Private equity firm PAI Partners has reached a deal with another PE firm, Ardian, to acquire a majority stake in Audiotonix, a company that produces professional audio mixing consoles and related products.
Ardian will retain a minority stake in Audiotonix alongside the company’s management team, PAI Partners and Audiotonix said in separate announcements on Tuesday (April 23).
According to a report in the Financial Times, the deal is worth nearly GBP £2 billion.
Headquartered in the UK, Audiotonix specializes in designing, engineering, and manufacturing audio equipment that delivers sound for diverse formats including live tours and concerts, theatre shows and major international live events, TV, film, music recording, sporting occasions and places of worship.
Audiotonix’s products have been used in events including live tours by artists like Coldplay and U2, sporting events like the Super Bowl and FIFA World Cup, and venues like the Las Vegas Sphere.
Founded in 2014, the company owns a portfolio of brands including Allen & Heath, DiGiCo, Calrec, Solid State Logic, Sound Devices, Slate Digital, and sonible. Audiotonix says these brands cater to the specific needs of high-end professional users and sound engineers globally. Audiotonix’s extensive distribution network covers over 400 value-added distributors and partners in more than 90 countries, with a significant presence in North America.
“With PAI, it is clear this is a team and partner we can take Audiotonix to the next level with, while preserving the passion and energy that have made the group the success it has become in our industry.”
James Gordon, Audiotonix
Ardian acquired Audiotonix in March 2020. Under Ardian’s ownership, Audiotonix acquired TV and film sound specialists Sound Devices, audio processing software Slate Digital, pro audio consoles and music production software Harrison, AI-powered audio processing software sonible, and most recently, live sound software developer Fourier Audio.
“I would like to thank Ardian for the confidence and solid support of Audiotonix, the management team and our staff. The team invested alongside us just as the Covid lockdown began, and from our first meeting were aligned with us, making sure Audiotonix emerged in a stronger position than before,” said Audiotonix CEO James Gordon.
“As management, the most critical challenge with a process like this is selecting the right partner moving forward, who understands what the business is today and can get behind the vision of what it can become. With PAI, it is clear this is a team and partner we can take Audiotonix to the next level with, while preserving the passion and energy that have made the group the success it has become in our industry.”
“We are delighted to partner with James Gordon and the exceptional Audiotonix management team, alongside Ardian, in this next chapter of growth.”
Colm O’Sullivan and Neil McIlroy, PAI Partners
PAI says its investment aims to capitalize on the growing importance of the “experience economy,” where live events and immersive entertainment are increasingly valued. Additionally, their support will aid Audiotonix’s research and development efforts, brand synergies, and fuel organic growth through strategic mergers and acquisitions within the broader audio ecosystem.
“We are delighted to partner with James Gordon and the exceptional Audiotonix management team, alongside Ardian, in this next chapter of growth. Audiotonix is well placed to benefit from positive structural tailwinds in the experience economy and diverse professional audio environments – whether in live entertainment, installed professional audio, music or sports,” said Colm O’Sullivan and Neil McIlroy, both Partners at PAI.
Olivier Personnaz, Head 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 were 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. When we first invested, we believed the team at Audiotonix were best placed to become a global leader in audio technology.”
Olivier Personnaz, Ardian
“We backed management to invest and build out an R&D team larger than any competitor and one that has consistently delivered technically and commercially outstanding products. We have also supported the business in expanding into software via M&A. Today, Audiotonix is undoubtedly the leading player in a market where we see long-term tailwinds. We want to thank the management team, led by James Gordon, for their exceptional performance, resilience and quick thinking. Audiotonix still has tremendous potential to grow in an evolving global market with the support of PAI.”
The transaction involved advisors from Goldman Sachs, Allen & Overy, McKinsey, and PwC for Ardian. PAI received advice from Weil Gotshal & Manges, McKinsey, and Alvarez & Marsal. Liberty Corporate Finance, Macfarlanes, and PwC served as advisors to Audiotonix.
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