Founded in 1964, Electrosonic is a global leader in the audiovisual industry with revenue of over $100 million and extensive experience in designing, engineering and integrating cutting edge audiovisual solutions.
The company has also been a leading innovator of professional audiovisual products including image processors, high definition video players and IP video switching devices. These products are typically used in high specification environments such as surveillance, visualization, defense and emergency operation centers where several graphic and video feeds are displayed on high resolution, multi-screen displays. Electrosonic’s recent projects include NASA’s Kennedy Space Center, the USA pavilion at Expo 2010 in Shanghai China, and RCCL’s Oasis of the Seas, the largest cruise liner in the world.
In 2009, Electrosonic undertook a strategic review of its business focus and growth opportunities for the future. As a result of that review, the Board made the decision to focus on its core audiovisual solutions business and divest the company’s Products Division. However, they wanted to make certain that they found the right buyer for the business. In their mind, the right acquirer would not only meet their financial objectives but also provide a good home and good fit for the business and employees. Cerca Trova’s deep M&A expertise, hands on experience with post deal integration issues, and ability to run a customized process were of particular importance in the Board’s decision to engage Cerca Trova Advisors.
Extron Electronics, one of the world’s leading manufacturers of professional audiovisual products, acquired Electrosonic’s Products Division. Electrosonic’s strong portfolio of image processing and IP video switching products was a natural complement to Extron’s existing product line and R&D capabilities and provided the best home for the Products Division.
Cerca Trova Advisors Role
- Completed a comprehensive feasibility study of strategic alternatives for the Products Division to help the Board evaluate the full spectrum of options for the business and the risks and rewards of each
- Rapidly developed and contacted a highly targeted short list of the most likely potential strategic acquirors and generated strong interest in the company, leading to multiple offers to purchase the business
- Managed and maintained a competitive deal process and found the buyer who placed the most value on the company
- Executed and structured a complex, cross-border transaction involving multiple entities in the United States, United Kingdom and Finland
- Completed the transaction within two months and exceeded the valuation expectations of the Board against the backdrop of a highly challenging M&A environment