Five years after an expansion drive supported by Matrix Equity Partners, DiGiCo (including the core team of James Gordon, John Stadius, Helen Cullerton and David Webster, pictured) has initiated the next stage of its development by securing secondary investment of nearly £50 million from ISIS Equity Partners, writes David Davies.
The announcement comes as the UK-based manufacturer prepares to celebrate the 10th anniversary of the D5 Live – the iconic live sound console which served as a primary catalyst for DiGiCo’s worldwide growth and remains a flagship of the digital audio revolution.
Matrix is continuing its association with DiGiCo, although it has reduced its investment size in the business. “As [Matrix partner] Bob Henry said, they love the company and believe in the future vision,” DiGiCo CEO James Gordon tells PSNE. “We wanted to keep Matrix included as they have been very good partners.”
Both Matrix and ISIS have non-executive directors on the board, but are not taking a management role. “Basically, it’s a standard private equity arrangement – they find a company and management they believe in, and invest money in the business plan. [From a DiGiCo perspective], it allows us to remain independent and take the company in the direction we believe it should be going in,” says Gordon, who describes the ISIS investment as a “fantastic opportunity for DiGiCo to build further on the achievements of the last five years”.
“I have worked in the pro-audio industry for 33-plus years,” said DiGiCo’s technical director, John Stadius. “The last five years with Matrix and the DiGiCo team have really opened up our ability to challenge new technology, such as our move to Stealth Digital Processing. The future combination of ISIS and Matrix is going to accelerate our development opportunities even further.”
Denise Emmanuel, investment director at ISIS, commented: “DiGiCo is a fantastic example of an entrepreneurial company and management team that is able to deliver growth even in a difficult environment. The combination of leading technology and exports makes DiGiCo a prime example of just the type of business that private equity should be investing in.”
“DiGiCo’s success has been driven by a highly focused and competitive management team, efficient investment in R&D, a commitment to quality in its Scottish factory and an uncompromising attention to customer satisfaction,” added Matrix Equity Partners’ Bob Henry. “This is exactly the type of business that Matrix likes to invest in and we are delighted to have the opportunity to remain part of this dynamic team and their growth plans.”