Powersoft strengthens its presence in the professional audio sector with the acquisition of K-Array

This transaction, which involves the acquisition of 51% of the share capital of K-array, is aligned with the strategic development plan of Powersoft Group, which aims to strengthen its presence in the professional audio sector through organic growth and acquisitions.

Powersoft has signed a binding investment agreement to purchase from H.P. Sound Equipment he 51% of the K-array share capital. The agreement also provides for the mutual granting of purchase and sale options in favor of Powersoft and H.P.. Sound, respectively, about him 49% remaining share capital of K-array. Closing of the transaction is planned, so far, for March 2025.

The acquisition price of the stake in K-array is based on a 100% enterprise value of the company equal to 50 million euros, estimated as of the closing date and subject to an adjustment procedure in line with market practice.

“We are delighted 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, with a strong territorial proximity and sharing a creative and innovative spirit, both convinced of the potential to create important technological and product synergies. We plan to enrich our portfolio with cutting-edge products, leveraging K-array's expertise and resources to develop new integrated audio solutions for an ever-evolving market. The synergy between Powersoft and K-array is destined to generate significant results in technological innovation, which will allow us to strengthen our presence in the segments in which we already operate and, at the same time, expand into new areas”, explains Luca Lastrucci, CEO de Powersoft.

Alessandro Tatini, president and CEO of K-array adds: “Our intention is to enhance our resources, which today are more than 100 and are among the most qualified on the market, for a promising future full of opportunities and success. In addition to the growth in number, The objective is to strengthen a solid and cohesive foundation capable of facing future challenges with greater resilience and determination. We have collaborated with Powersoft from the beginning and, beyond being neighbors and sharing an identity deeply rooted at a local level but with a global orientation, We are united by a strong passion for technology and sound. Your innovations have always been an essential part of our work, So it is obvious to realize that joining forces could add significant value to the growth that, in recent years, It's been double digits., which gives us immense satisfaction”.

Twenty years of history

K-array, founded in 2005 y with headquarters in Scarperia and San Piero (Florence), is dedicated to the design and manufacturing of high-performance, compact-design audio systems for a wide range of applications..

The company, with more than one hundred highly qualified resources, operates primarily through three brands aimed at different market segments: K-array, the company's main brand focused on audio professionals, KGear, focused on traditional and more affordable audio solutions, y KScape, offering high-quality audio and lighting systems that combine excellence with sophisticated design.

The share capital of K-array is currently held by H.P. Sound, in turn owned by the founders and management of K-array, specifically in a 53,7% of Gioia and in a 28,3% of Massimo Ferrati, CEO and founder.

K-array's income 31 December 2023 amounted to about 19 million euros, with a reported EBITDA of approximately 3,7 million euros. According to preliminary results at 31 December 2024, K-array expects revenue of approximately 22,1 million euros (more than 16% compared to the previous year) and an EBITDA of 6,6 million euros (+76%).

Organic growth and acquisitions

K-array acquisition transaction is aligned with Powersoft Group's strategic development plan, which aims to strengthen its presence in the professional audio sector through organic growth and acquisitions, as described from the IPO.

This acquisition also represents the development of a 'supplier-customer' partnership’ long-term partnership between two companies that share common values: technological innovation, excellence, creativity, design, customer service and product quality. The goal is to take advantage of their complementary strengths, boosting competitiveness and fostering growth, al tiempo que preservan sus identidades y autonomía operativa, within a shared growth plan.

At the moment, Powersoft will continue its mission as a global technology provider, while K-array will maintain its positioning in the high-end audio speaker industry.

The acquisition also forms part of Powersoft's growth strategy to transform the Group from a product company to a solutions provider., with a primary focus on the transportation and automotive sectors, where technological innovation, The efficiency and reliability of audio systems play a key role.

By combining their know-how in amplification systems, signal processing and transducers with K-array's expertise in engineering and designing high-performance compact loudspeakers, Powersoft will be able to accelerate its expansion in these markets and strengthen its position by offering innovative audio systems, efficient and unique design. These systems will meet increasing quality demands, reliability and space optimization required by the automotive industry and modern transportation systems.

The combination will also open new joint business opportunities and enable the expansion of commercial offerings into new market segments within Powersoft's 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, what, according to the operating and financial figures of the financial statements at 31 December 2023, achieves an estimated pro forma aggregate turnover of approximately 88 million euros, with an estimated pro forma EBITDA close to 24 million euros, counting on approximately 300 professionals, among the most experienced in the industry.

This transaction creates a leading group in the international professional audio industry, taking advantage of a wide range of products, technological experience and 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. It will also allow prioritizing revenue synergies through greater product diversification, Expanded target markets and greater geographic reach.

Besides, 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.