Audinate Group Limited (ASX:AD8), developer of the professional AV-industry leading Dante® media networking solution, is pleased to announce that it has completed the acquisition of the video business of Silex Insight SA (“Silex”), based in Belgium (transaction initially announced 13 December 2021). The Silex video business produces video networking products for manufacturers of AV equipment.
The acquisition of the Silex video business is strategically compelling because it complements Audinate’s existing video capabilities in Cambridge UK and aligns with Audinate’s strategic vision for video over IP. In particular, the transaction will increase video hardware engineering capacity, enable acceleration of the video product roadmap, and cement critical mass for video product engineering in Europe.
The acquisition consideration comprises an up-front cash payment of US$6.5 million and a revenue earn-out of up to US$1.5 million may be payable based on the uplift in revenue for the twelve-month period from acquisition date.
The transaction consideration reflects the challenging supply chain environment impacting the Silex video business, as it has the AV industry generally. Component shortages are expected to curtail revenue for the first half of calendar year 2022, albeit a strong order book is ultimately expected to translate into revenue as supply chain pressures ease.
Audinate Co-founder and CEO Aidan Williams commented: “We are very excited to acquire a team with widely recognised video hardware expertise and an existing revenue base. The video codecs and deep product expertise in the team, in combination with our Dante networking technology, will enable us to go to market with a variety of full-service video offerings. This acquisition complements the video software skills in the Cambridge (UK) team we established earlier in the year. Together these two deals significantly enhance our video capabilities and know-how – outcomes that have been achieved in only twelve months, notwithstanding the challenges presented by COVID.”
Audinate expects to release its half year results on 14th February 2022.