The Vitec Group Acquires Audix Microphones The Vitec Group, an international conglomerate of hardware products and software solutions for content creation, announced that it completed the acquisition of Audix, the microphone manufacturer from Portland, Oregon, which in the past three years has successfully executed the most ambitious product catalog expansion in its history. With the acquisition, The Vitec Group expands its audio hardware business established with the 2018 acquisition of Rycote, the manufacturer of advanced microphone windshields and suspension systems.
The Vitec Group is a formidable conglomerate of famous brands in film and television production equipment, which has gradually expanded to the whole content creation market with an ambitious acquisition of manufacturing companies and brands also in the consumer space. From owning all the most important companies in camera systems, including Manfrotto, OConnor, Sachtler, and Vinten, the group today controls all the equipment needed for production and rental companies, photographers, and independent content creators, from camera supports, to video transmission systems and monitors (Teradek), live streaming solutions, smartphone accessories, robotic camera systems, prompters, LED lighting (Lightpanels), mobile power (Anton/Bauer), bags, backgrounds and motion control, audio capture and noise reduction equipment. Vitec currently employs around 2,000 people across the world in 11 different countries and is organized in three Divisions: Imaging Solutions, Production Solutions and Creative Solutions. The company announced that it has agreed the acquisition of Audix LLC for up to $54.3 million USD in cash, for its Imaging Solutions Division. Audix designs, engineers and manufactures high performing, innovative microphones for the professional audio industry from its advanced manufacturing facility in Portland, Oregon, US. And Vitec believes the acquisition accelerates and further strengthens its 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 total addressable market by bringing a premium microphone brand serving the music, professional vocal and enterprise market, complementing its JOBY consumer business and Rycote brands. Vitec estimates the on-camera microphone market to be worth approx. US $400 million, and the overall microphone market estimated to be worth 1.1 billion USD. "Vitec is uniquely placed to help the Audix business grow and drive synergies. The acquisition enhances the 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," the announcement states. "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," explains Stephen Bird, Group Chief Executive. "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," he adds. According to its "strategic rationale for the acquisition" guideline, Vitec is focused on investing in businesses which are exposed to faster-growing areas of the content creation market. "Vitec has lacked a more specialist audio R&D capability to allow us to design and manufacture the microphones ourselves, which is what Audix brings. We intend to use their expertise to enhance the speed of new product development and expand our range of on-camera microphones further," the announcement adds. "In addition, Audix expands the Group's TAM, bringing Vitec a premium microphone brand which is focused on the music, professional vocal and enterprise markets, and is complementary to our growing JOBY and Rycote brands. We estimate that 75% of Audix current revenue is in the US and they have no direct e-commerce capabilities. We expect to significantly grow the Audix brand by selling their products through our global distribution network and we will use our digital expertise to market and sell Audix products online. There are also opportunities to sell other Vitec brands to the Audix customer base." An example of a Joby camera microphone (Wave) which already includes windshields and suspensions designed by Rycote. The acquisition also gives the Group state-of-the-art, vertically integrated, audio manufacturing facilities in the US, which provides the opportunity for a number of synergies. "We plan to move Rycote's microphone manufacturing and engineering development to Audix's facilities. We will also bring the development of our JOBY microphones to the US. This will accelerate our new product innovation process and enable us to extend our microphone range, as well as further strengthening our competitive advantage in the largest content creator market. Audix will become part of Vitec's Imaging Solutions Division and the Audix team and the facility in Oregon will become Vitec's Audio R&D Centre of Excellence. The business has 33 permanent employees. The CEO and co-founder, Fred Bigeh, and CFO, Cindy Bigeh will join Vitec," Vitec also discloses. Founded in 1984, Audix is one of the few microphone companies worldwide that produces a comprehensive range of wired and wireless microphones. These include vocal and instrumental microphones for recording and sound reinforcement as well as a range of microphone solutions for business, educational, government and telemedicine users. Audix products are designed and manufactured in the Company's facility in Wilsonville, Oregon. Having R&D and manufacturing under one roof enables Audix to develop and streamline new products from idea to prototype to production, both rapidly and efficiently. Audix has a substantial Intellectual Property portfolio including patents, trademarks and trade secrets. www.vitecgroup.com www.audixusa.com |
