Tiny Ltd. Acquires Majority Stake in Serato Audio Research in US$66 Million 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, representing a significant consolidation play in the digital technology sector.

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 reflect the premium placed on Serato Audio Research's market position and growth potential within the competitive audio software landscape. The transaction structure demonstrates the sophisticated approach to technology acquisitions, balancing equity and cash considerations to optimize the financial outcome for both parties involved.

Concurrent with the acquisition, Roth Canada played a pivotal role in the transaction's financing through comprehensive capital market solutions. 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, showcasing the complex financial engineering required to support such strategic acquisitions in the technology sector.

This acquisition underscores Roth Canada's commitment to supporting high-growth technology and digital platform businesses through strategic mergers and acquisitions. The transaction highlights the ongoing consolidation and investment in the digital technology sector, with a focus on strategic asset acquisition and innovative financing structures. The deal represents a significant milestone in the audio software industry's evolution, demonstrating how established companies are leveraging financial expertise to expand their technological footprint and market reach through carefully structured acquisitions.