Bregal, Armira go head to head for IK Multimedia

Micaela Osella and Valentina Caiazzo
17 November 2021

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The sale of IK Multimedia, an Italian designer of apps for music creation, is in a head-to-head battle between two contenders, according to four sources familiar with the situation.

UK private equity firm Bregal and German financial sponsor Armira were mentioned as the two frontrunners in play.

Talks were described as at an advanced stage and very fluid. For this reason, one of the parties should be granted exclusivity by the end of this month, sources said, noting that the signing is likely expected before the Christmas break.

IK Multimedia, Bregal and Armira did not return requests for comment. GCA Altium declined to comment.

Management, which is being advised by GCA Altium (AKA Altium Capital), has selected offers of more than 10x EBITDA, counting on its heritage and healthy balance sheet, the same sources noted. The company's founders and owners, Enrico Iori and Davide Barbi, are seeking external backing to support the company's growth, the source added.

For 2021, IK Multimedia expects to generate up to EUR 15m in EBITDA, the first and the fourth sources said.

The process kicked off at the beginning of September, the sources said.

Founded in 1996, IK Multimedia designs and manufactures apps, software, hardware and accessory products for music creation and playback on computers and mobile devices.

Wholly held by the two co-founders, Iori and Barbi, the company started manufacturing electronic hardware accessories for computers in 2006, and in 2010 evolved into the production of app-enhanced iOS accessories, as per its website.