MELBOURNE: Australian video technology company Atomos Ltd (ASX:AMS) said on Monday it has agreed to acquire U.S.-based reference monitor maker Flanders Scientific Inc. (FSI), a deal that accelerates its push into high-end post-production workflows and expands its share of customer spending across the video production chain.
Under a binding share purchase agreement, Atomos will pay $2.35 million in cash and issue 5.6 million ordinary shares as upfront consideration for the Georgia-based company. Additional earn-out payments, comprising up to 30 million shares and a cash component tied to sales performance, will be made over the next three years subject to operational milestones.
FSI, which employs 14 staff across the U.S. and the U.K., averaged $11 million in revenue and $450,000 in EBITDA over the past five years. In calendar 2025, the company generated $12.7 million in revenue and $570,000 in EBITDA. Atomos said the acquisition is immediately earnings accretive and reaffirmed its previously issued guidance for fiscal 2026.
“The FSI brand has a long-standing customer association with product excellence, quality and trust — attributes that closely align with those of Atomos,” said Peter Barber, managing director and CEO of Atomos.
The deal will be funded from a new A$10 million finance facility announced last week with Commonwealth Bank of Australia. Completion is expected by the end of May 2026, subject to customary conditions including settlement of the facility.
Atomos, known for its on-camera monitors and recorders, entered the reference-grade monitor market in September 2025 with its Studio Pro-2710. The FSI acquisition adds a suite of calibrated reference displays used by colorists and editors in critical color-critical applications.
Barber said the combination strengthens Atomos’ ability to support professional production and post-production workflows “from on-camera through to final delivery.”
Atomos said post-synergy EBITDA from FSI is expected to reach $1 million annually before any revenue growth. If all performance milestones are achieved, the acquisition implies an earnings multiple of 5.4 times, or 3 times on a post-synergy basis.
The shares issued as consideration will be made under Atomos’ existing placement capacity under ASX Listing Rule 7.1 and do not require shareholder approval. No escrow conditions apply.
FSI co-founder and CEO Bram Desmet will remain with the business, Atomos said.