Focusrite PLC (AIM:TUNE) moved higher on Tuesday after announcing the acquisition of audio reproduction business OutBoard.
With the total acquisition price set to be £3.57 million, Focusrite will pay £2.37 million initially for the firm, alongside a performance-linked payment of £1.2 million by the end of next year.
This will come from Focusrite’s cash reserves, the company said in an update, with OutBoard having generated revenue of £1.4 million and pre-tax earnings of £0.3 million in the year to October.
OutBoard itself operates brands selling industry standard rigging control products for live events such as Hyde Park concerts, alongside an audio business called TiMax.
TiMax specialises in immersive audio and show control technologies and sees its products used in the West End and on Broadway.
“Their products are vital for professionals in the audiovisual industry, particularly in live performances, event management, and the rapidly expanding sector of immersive sound experiences,” Focusrite said.
“We are looking forward to integrating OutBoard's technologies and exploring new opportunities in this segment of the rapidly evolving audio industry,” chief executive Tim Carroll added.
Shares climbed 3.3% to 537p.