LONDON, UK: The Vitec Group, the international provider of premium branded hardware products and software solutions to the growing content creation market, has agreed to acquire Audix LLC for up to $54.3 million in cash. Completion is expected shortly.
Audix designs, engineers and manufactures high performing, innovative microphones for the professional audio industry from its advanced manufacturing facility in Portland, Oregon, US.
Acquisition accelerates and further strengthens Vitec’s audio capture strategy by bringing additional specialist R&D capabilities to enable the Group to design and build microphones in-house.
Audix also expands the Group’s TAM¹ by bringing a premium microphone brand serving the music, professional vocal and enterprise market, complementing our growing JOBY and Rycote brands; Vitec is uniquely placed to help the Audix business grow and drive synergies.
Acquisition enhances Group adjusted operating margin, is immediately accretive to adjusted earnings per share and its return on investment will exceed Vitec’s cost of capital from FY 2023 onwards.
For the existing Group, the Board expects to report adjusted profit before tax for the year ended 31 December 2021 in line with market consensus.
Stephen Bird, Group Chief Executive, commented: “Audix is a strategically significant addition to Vitec and a key element of our audio capture strategy.
Audio capture is an essential part of video creation as it enhances the quality of the content. We know the audio capture market, the channel and the customers well, and Audix’s specialist R&D capabilities will accelerate our product innovation, which is mainly focused on developing microphones under the growing JOBY brand.
The acquisition also gives the Group a premium microphone brand which we will expand by selling the Audix products through our global distribution network and e-commerce channels. In addition, Audix brings state-of-the-art manufacturing facilities in the US which provides the opportunity for synergies.
“This is another highly complementary and financially attractive acquisition in a strategic growth market. It expands our TAM, strengthens our higher technology capabilities and accelerates the deployment of our audio capture strategy, which we see as a sizeable opportunity. I am delighted to welcome the Audix team to the Group and look forward to developing our audio business further.
“Vitec had a strong performance in 2021, as the Group continued to benefit from significant growth across multiple segments of the content creation market and a well-managed cost base. We have entered 2022 with a record order book and the outlook for the Group is very positive, despite some uncertainties, primarily around previously highlighted component shortages.”
Vitec is focused on investing in businesses which are exposed to faster-growing areas of the content creation market, particularly in our Imaging Solutions Division, where growth is being driven by the need to photograph products to sell on the internet which, as a result, is increasing demand for professional studio photography. Market demand is also being driven by vloggers and influencers creating and sharing content on social media. Audio capture is an essential part of video creation as it enhances the quality of the content.