Tiny Ltd. Acquires Majority Stake in Serato Audio Research in US$66 Million Strategic Deal

Tiny Ltd. (TSX.V: TINY) has acquired a 66% interest in Serato Audio Research, a leading global audio software company, in a transaction valued at US$66 million. The acquisition, advised by Roth Canada, involves US$23.6 million in Tiny common shares and US$42.4 million in cash. This strategic move positions Tiny Ltd. to expand its technological capabilities and market presence in the audio software industry.

The deal implies a valuation of 3.2x annualized revenue and 9.6x adjusted EBITDA based on financial results for the nine months ended September 30, 2024. These valuation metrics provide important context for understanding the financial rationale behind the acquisition and demonstrate the premium placed on Serato Audio Research's market position and growth potential within the competitive audio software landscape.

Concurrent with the acquisition, Roth Canada played a pivotal role in the transaction's financing. The firm co-led a C$20 million bought deal public offering of 17.4 million subscription receipts at C$1.15 per receipt and served as co-lead placement agent for a C$36.1 million private placement of convertible debentures. The total transaction financing reached C$56.1 million, representing a sophisticated financing structure that supported the substantial acquisition price.

This acquisition underscores Roth Canada's commitment to supporting high-growth technology and digital platform businesses through strategic mergers and acquisitions and comprehensive capital market solutions. The transaction highlights the ongoing consolidation and investment in the digital technology sector, with a focus on strategic asset acquisition and innovative financing structures that enable companies like Tiny Ltd. to pursue transformative growth opportunities in specialized technology markets.

The acquisition of Serato Audio Research represents a significant expansion of Tiny Ltd.'s technological portfolio and market reach within the audio software industry. By gaining majority control of a recognized global leader in audio software, Tiny Ltd. positions itself to leverage Serato's established market presence, technological expertise, and revenue streams to drive future growth and diversification. This transaction exemplifies the strategic approach many technology companies are taking to expand their capabilities through targeted acquisitions rather than organic development alone.