ISIS and DiGiCo hear the future
ISIS Equity Partners has completed an off-market investment in DiGiCo Europe Limited in a deal worth £50m.
DiGiCo is a fast growing, technology led business that designs and manufactures digital mixing consoles that are sold globally into the live music market, theatres, Houses of Worship and corporate market.
The business was originally formed in 1971. In 1996 it released its first digital console, several years ahead of the competition. Since 2007, under the leadership of the current Managing Director James Gordon, the business launched the market leading SD series of consoles. This propelled DiGiCo into a significant period of growth through new markets and geographies. Turnover has grown from £8 million in 2007 to £22 million in 2011.
DiGiCo consoles have been an integral part of the audio production for some of the world’s leading artists such as U2, Madonna, George Michael and the recent ‘Glee Live’ tour throughout the US and the UK.
DiGiCo operates from its head office in Chessington, Surrey with an assembly and shipping facility based in Glenrothes, Scotland. Approximately 85% of its turnover is international and it won the Queen’s Award for Enterprise – International Trade in 2011
The investment by ISIS will allow some of DiGiCo’s current shareholder base to realise their holdings. The management team and previous funders Matrix Private Equity Partners are rolling over a significant portion of value into Newco, alongside ISIS.
The investment will also support the business to continue its penetration of new markets and further develop its long established track record in R&D. DiGiCo has exciting plans to continue launching market leading, technically superior products into the console market.
ISIS’ previous experience of investing in the audio technology market includes loudspeaker manufacturer Martin Audio which was successfully sold to US based LOUD Technologies in 2007 after a four year investment period.
James Gordon, CEO, DiGiCo comments:
“This is a fantastic opportunity for DiGiCo to build further on our achievements of the last five years. The company has rapidly expanded in a short space of time and the timing is perfect to add some new investment and experience to the team. ISIS’s historical knowledge of our niche industry is going to be very valuable as the company continues to evolve.
Matrix’s desire to remain invested with in the company and team is a real mark of how well that MBO relationship has worked. The future combined strength of the two houses offers a new dynamic to our future possibilities and once the dust has settled I am sure we will take full advantage of them.
Right now, I am just looking forward to getting back to actively driving the company and doing what we do best, digital audio.”
Matrix’s desire to remain invested with in the company and team is a real mark of how well that MBO relationship has worked. The future combined strength of the two houses offers a new dynamic to our future possibilities and once the dust has settled I am sure we will take full advantage of them.
Right now, I am just looking forward to getting back to actively driving the company and doing what we do best, digital audio.”
Denise Emmanuel, Investment Director at ISIS commented:
“DiGiCo is a fantastic example of an entrepreneurial company and management team that is able to deliver growth even in a difficult environment. 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.”
