Audio-visual technology solutions company Ambertech (ASX:AMO) reports it has reached an agreement to acquire the distribution business Convoy International.
The company states this acquisition represents another important step in executing Ambertec’s strategic growth plan. Consideration for the acquisition is anticipated to be net cash, in the order of $2.8 to $3 million and include inventory and accounts receivable dependent on valuation at settlement, business use assets, as well as goodwill of around $500,000 subject to final valuation.
As part of the agreement, Ambertech will pay using existing cash reserves, and the initial incremental revenue growth from the transaction is expected to be between $4 million and $5 million annually, with ongoing growth potential.
“These brands allow Ambertech to expand our solutions for residential installers and specialist HiFi dealers”
Commenting on the agreement, Ambertech Managing Director Peter Amos says: “We are very pleased to be adding prestigious Convoy brands to our portfolio such as NAD, Bluesound, and JBL Home.
These brands allow Ambertech to expand our solutions for residential installers and specialist HiFi dealers and consolidates our position as the supplier of choice to these markets.”
Ambertech Chief Operating Officer (COO) Robert Glasson added: “We have established a strong set of acquisition criteria as a fundamental element of our growth strategy, and Convoy is a business that we have been following for many years.
Identifying premium brands, strategic relationships and quality people remains key. Delivering growth without compromising the support we provide for our brands in the market is critical.
Our operating teams will now work towards a successful completion and integration of the Convoy business.”
Ambertech reports the acquisition agreement is expected to be completed around 31 January 2023.
Convoy International is an Australian importer, distributor and marketer of loudspeakers, amplifiers, media players, headphones and speakers for personal audio devices, advanced home audio components and audio-visual digital accessories. Notable brands in the company’s portfolio include Bluesound, NAD Electronics, JBL Synthesis and Studio Monitors, Cary Audio, Revel Loudspeakers and Mark Levinson.
Ambertech is a technology solutions company that specialises in installing audio and visual technology across Australia and New Zealand. The company instals equipment for professional broadcasters, media and communications, defence, law enforcement and security.
The company also instals equipment for the live sound production, musical instruments and sound recording, as well as residential and commercial purposes.
