Avid Strikes Again – Buys Sibelius
Sibelius, the music notation software concern, has been purchased by Avid Technology for $23 million (£12.2m) in a cash buyout for the London-based company. Avid, who recently snapped up M-Audio, is obviously looking to build on its savvy acquisition model.
If Avid was looking for a bargain, it may have found it. Sibelius went for about one-and-a-half times its yearly turnover. The company claims 180,000 registered users worldwide (with a huge base in the UK). Avid may have seen real potential in implementing a true copy-protection scheme (one word: dongle), since the software is widely pirated.
In the last fiscal year, Sibelius earned $1.54 million (£818,000) before tax, up 50% from the prior year. Sales were a robust $15.45 million (£8.2m), up 2% from the prior year. The company reported net assets of $4.6 million (£2.45m). Presumably, all or most of the cash will go to Sibelius’ shareholders.
Sibelius will operate as a standalone unit within Avid’s DigiDesign audio division.
