Atomos acquires Timecode Systems and raises $22.5m via Placement.
Henslow is pleased to announce that we have advised Atomos in the strategic acquisition of Timecode Systems Ltd.
Concurrently, the Company has also raised approximately $22.6 million via an institutional placement, with funds being used to fund the acquisition, provide growth capital to maximise sales & margin and take advantage of emerging market development opportunities.
This will be the seventh capital raise that Henslow has undertaken for Atomos with total funds raised of c.$90m.
Timecode Systems is a UK-based company that has developed unique and patented technology the enables multiple audio and video capture devices to wirelessly syncronise together. TCS has began licensing or building key relationships with major global audio and video companies such as Panasonic, JVC Kenwood, Nikon, GoPro, Apple and Zoom. Their technology has been used on major feature films including The Avengers and James Bond Spectre.
Traditionally, the accurate timecode synchronisation of video and audio footage from multiple devices (i.e. camera) has only been possible by using cables – a process that required considerable time, equipment and know-how to set up. This process is a critical element in video and audio capture as any sync/frame timing issue can lead to multiple device footage drifting apart over time, leading to inconsistencies in post-production editing.
“The primary rationale for the acquisition is the value Atomos can realise from acquiring the TCS IP and effectively accelerating and increasing the commercialisation of that IP. The IP has very significant disruptive implications for the future of content creation and therefore such acquisition is very much on-strategy with Atomos’ vision.”
Atomos CEO, Jeromy Young
TCS’ technology is the next evolution for the industry, enabling multiple devices to be wirelessly synced together using precise timecode and metadata information. This acquisition furthers Atomos’ vision to invent and deliver ground-breaking and disruptive technologies that enhance, simplify and ultimately democratise video content creation. Atomos is a current licensee of the TCS technology which is already integrated in Atomos’ latest products.
“We look forward to working more closely with Jeromy and the Atomos team and believe in their vision of bringing professional-quality video content tools to the masses. This was a large factor in our decision around the structure of consideration, choosing to receive the majority in Atomos shares, an outcome we believe will best maximise value for TCS shareholders”
Timecode Systems CEO, Paul Scurrell
Following the completion of the acquisition, TCS co-founders Paul Scurrell (CEO) and Paul Bannister (CTO) will join Atomos, managing the integration process whilst continuing to drive revenue growth. TCS has 10 existing employees who will all join Atomos after the acquisition. The acquisition is expected to be completed in December 2019.
We’re excited to see Atomos grow in market and offering throughout 2020.
To discuss this transaction, or to see how Henslow can assist your business, please contact Ryan Whitelegg (rwhitelegg@henslow.com) or visit our website at www.henslow.com
