DiGiCo trade sale sees Mobeus reap 5.5x money

Mikkel Stern-Peltz
01 August 2014

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A new audio group backed by Electra Partners has bought audio mixing console business DiGiCo from Mobeus Equity Partners and Isis Equity Partners, which has partially exited the business.

Isis has retained a minority share in the newco following the sale.

The business has returned £25m to Mobeus over the investment cycle. The exit sees the investor reap a 5.5x multiple on its original £4.6m investment in 2007 and a 45% IRR.

Isis has returned a more modest 2x money on its 2011 investment, which was made as part of a £50m management buyout, but the GP retains a stake in the business.

DiGiCo designs and manufactures digital audio mixing consoles for professional use and will be rolled into a new professional audio group along with Electra's current brands, Allen & Heath and Calrec. Both Electra companies operate in the professional audio sector. The new group will be led by DiGiCo CEO James Gordon.

The sale is Mobeus's fourth exit in 2014, following the partial sale of ATG Media to ECI Partners, and trade sales of MachineWorks Software and Monsal Holdings.

Previous funding
Mobeus acquired DiGiCo through an MBO in 2007 worth around £6.5m, according to unquote" data. The GP's £4.6m purchase of a significant minority stake was supported by a combination of around £1.9m from the management team alongside a working capital commitment.

In 2011, Isis acquired a controlling interest in the company for £50m from Mobeus, which retained an 11% stake. The partial exit represented a 4.4x multiple and 36% IRR for the GP.

Company
Founded in 1971, DiGiCo designs and builds premium digital audio mixing consoles for live sound, theatre productions and broadcast applications as well as supplying interfacing for post-production and recording studios.

The Chessington-headquarted company has tripled its revenues since the 2007 deal, growing from £8m to £24m in 2013. It employs around 60 people.

People
James Gordon is CEO of DiGiCo and will head the new group formed after the deal. Adam Holloway is a partner with ISIS, and Bob Henry is a partner at Mobeus.