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- Audinate Group (AD8) to buy the video business of Silex Insight, based in Belgium
- The video business produces video networking products for manufacturers of audio-visual (AV) equipment
- To pay for the business, Audinate will make an upfront cash payment of US$6.5 million (just over A$9 million)
- The video business acquisition reportedly complements Audinate’s existing video capabilities in Cambridge, UK
- On the market, Audinate is down 11 per cent and is trading at $9.31 per share
Audinate Group (AD8) has agreed to purchase the video business of Silex insight, based in Belgium.
The video business produces video networking products for manufacturers of audiovisual (AV) equipment.
To pay for the business, Audinate will give an upfront cash payment of US$6.5 million (just over A$9 million), representing about 2.3 times the expected revenue for the financial year ending December 31 2021.
Additionally, a revenue earn-out of up to US$1.5 million (A$2.09 million) may be payable based on the uplift in revenue for the 12-month period from the acquisition.
The company says the acquisition complements Audinate’s existing video capabilities in Cambridge, UK.
The purchase includes an existing team of eight engineers with extensive video implementation expertise and average tenure of 16 years.
Audinate is expecting to complete the purchase on January 31, 2022, and is subject to certain conditions.
Audinate Co-founder and CEO Aidan Williams was excited about the purchase.
“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,” he said.
“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.”
On the market, Audinate was down 11 per cent and is trading at $9.31 per share at 2:03 pm AEDT.
