Isis Equity Partners invests in DiGiCo in second investment round
Published: MEA
WORLD: A secondary round of investment for DiGiCo has seen Isis Equity Partners plc commit a major investment into the UK-based digital console manufacturer. The deal comes almost five years after Matrix Private Equity funded a £6.5million management buyout that set the manufacturer on its current highly successful R&D trajectory. As a result of this fresh deal Matrix has reportedly reaped a 36 per cent return on its investment whilst retaining 11 per cent of the company’s shareholding.
Over the last year DiGiCo has vigorously entered new vertical markets including broadcasting, while its R&D ambitions have recently segued beyond physical console manufacturing into solutions-based development with products including the Remote Record Interface.
The new investment round – reported as being worth £50million – is expected to further boost new R&D projects alongside the company’s own expansion. Its ambitions were demonstrated in September 2011 when it expanded its manufacturing base with the addition of a purpose-built electronics factory, its second in Glenrothes, Scotland, which was described as twice the size of its existing facility.
Nor does the agreement mark the first time that Isis has entered the professional audio industry – the investment firm previously supported a 2003 management buyout that saw Martin Audio depart the TC Group.
Following the announcement, DiGiCo CEO James Gordon described the deal as ‘a fantastic opportunity for DiGiCo to build further on the achievements of the last five years. The company has expanded rapidly in a short space of time and the timing is perfect to add some new investment and experience to the team. Isis’ historical knowledge of our niche industry is going to be very valuable as the company continues to evolve. Matrix’s desire to remain invested within the company and team is a real testament to how well that MBO relationship has worked. The future combined strength of the two houses offers a new dynamic to our future possibilities that I am sure we will take full advantage of.’
Technical director John Stadius added: ‘I have worked in the pro audio industry for 33 plus years. The last five years with Matrix and the DiGiCo team have really opened up our ability to challenge new technology, such as our move to Stealth Digital Processing. The future combination of Isis and Matrix is going to accelerate our development opportunities even further.’
The new investment also comes at a significant moment for the manufacturer, as 2012 marks the 10th anniversary of the launch of the D5 Live console, which the company points to as its official founding as DiGiCo. However, according to Denise Emmanuel, investment director for Isis, the investment was made more attractive by DiGiCo’s strength in export markets. Approximately 85 per cent of the manufacturer’s current turnover is attributed to exporting.
‘DiGiCo is a fantastic example of an entrepreneurial company and management team that is able to deliver growth even in a difficult environment,’ explained Ms Emmanuel. ‘The combination of leading technology and exports makes DiGiCo a prime example of just the type of business that private equity should be investing in.’ Matrix Equity Partners’ Bob Henry added that the firm is ‘delighted to have the opportunity to remain part of this dynamic team and their growth plans’.