Powersoft acquires 51% of share capital of K-Array, with option to reach 100%

Powersoft S.p.A. (“Powersoft“), at the head of a technology group (“Powersoft Group“) operating worldwide in pro-Audio systems and listed on Euronext Growth Milan, announces the signing today of a binding investment agreement (the “Agreement“) to acquire from H.P. Sound Equipment S.p.A. (“HP Sound” or the “Seller“) 51% of the share capital of K-Array S.r.l. (“K-Array” or the “Company“), specialized in the design and manufacture of innovative high-performance, compact design audio systems for a wide range of applications (the “Transaction“). The Agreement also envisages the mutual granting of call and put options in favour of Powersoft and HP Sound, respectively, on the remaining 49% of K-Array’s share capital. The closing of the transaction is, to date, expected by March 2025.
 
Luca Lastrucci, CEO of Powersoft: “We are excited to announce this acquisition, a significant strategic step for our company and the professional audio market. This transaction arises from a successful partnership between two companies that have been collaborating for many years now, with a strong territorial proximity and sharing a creative and innovative spirit, both convinced of the potential to create important product and technological synergies. We plan to enrich our portfolio with cutting-edge products, leveraging the expertise and resources of K-Array to develop new integrated audio solutions for an ever-evolving market. The synergy between Powersoft and K-Array is set to generate significant results in technological innovation, allowing us to strengthen our presence in the segments where we already operate while also expanding into new areas. We can’t wait to start working with K-Array to set new and even higher standards of excellence”.
 
Alessandro Tatini, Chairman and CEO of K-Array: “Massimo Ferrati (CEO and co-founder) and I decided on this strategic step to integrate our company into a solid and constantly growing group like Powersoft. Our intention is to empower our resources, now over 100 and among the most qualified on the market, for a promising future filled with opportunities and success. In addition to growth in numbers, the goal is to strengthen a solid and cohesive foundation capable of tackling future challenges with greater resilience and determination. Our team has been integral to our growth journey, and we believe it is our responsibility to provide them with an even more ambitious vision for our project. We have been collaborating with Powersoft since the beginning, and beyond being neighbours and sharing an identity deeply rooted locally yet globally oriented, we are united by a strong passion for technology and sound. Their innovations have always been an essential part of our work, making it obvious to realize that joining forces could add significant value to the growth that, in recent years, has been in double digits, bringing us immense satisfaction. We are confident that this partnership will allow us to achieve incredible results in synergy. We are excited and eager to unleash our full creativity and potential”. 

Acquisition goals, achievable synergies and effects of the Transaction on the Issuer
 
The K-Array Acquisition Transaction is fully aligned with Powersoft Group’s strategic development plan, which aims to strengthen its presence in the pro-Audio sector through both organic growth and acquisitions, as outlined since the IPO.
 
It also represents the logical development of a long-established “supplier-customer” partnership between two companies that share common values: technological innovation, excellence, creativity, design, customer focus, and product quality. The goal is to leverage their complementary strengths, boosting competitiveness and fostering growth, while preserving their distinct identities and operational autonomy within a shared growth plan. Currently, Powersoft is set to continue its mission as a global technology provider, while K-Array will maintain its unique positioning in the high-end audio speaker industry.
 
The acquisition is also part of Powersoft’s growth strategy to transform the Group from a Product Company to a Solution Provider, with a primary focus on the transportation and automotive sectors, where technological innovation, efficiency, and the reliability of audio systems play a key role.
 
Mention should be made in this regard of the recent technology partnership signed with Ferrari S.p.A., which marked Powersoft’s entry into the supercar industry, establishing a remarkable reference in the automotive sector.
 
By combining its know-how in amplification systems, signal processing, and transducers with K-Array’s expertise in compact, high-performance loudspeaker engineering and design, Powersoft will be able to accelerate its expansion in these markets and strengthen its position by offering innovative, efficient, and uniquely designed audio systems. These systems will meet the growing demands for quality, reliability, and space optimization required by the automotive industry and modern transportation systems.
 
The combination will also open up new joint business opportunities and allow for the expansion of business offerings into new market segments within the Powersoft portfolio. The combined presence of the two companies through their distribution networks will also drive greater penetration in high-growth markets such as Asia and Latin America, further consolidating the Group’s global positioning.

The acquisition of K-Array also represents a significant dimensional leap for Powersoft Group, which, based on the operating-financial figures from the financial statements at December 31, 2023, achieves an estimated pro-forma aggregate turnover of approximately Euro 88 million, with an estimated pro-forma EBITDA nearing Euro 24 million, counting on approximately 300 professionals, among the most experienced in the industry.
 
This transaction creates a leading group in the professional audio industry on an international scale, leveraging a wide range of products, technological expertise, and the innovative approach of two highly complementary companies. The combination of the two companies is expected to drive a potential increase in volume, with positive impacts on margins, while maintaining strong financial health and cash flow. The combination will also enable the prioritization of revenue synergies through enhanced product diversification, expanded target markets, and greater geographical reach. Additionally, the collaboration between the R&D teams of both companies will accelerate the development of next-generation audio systems, in line with the latest market trends, especially for new transducer applications.

www.powersoft.com