- Around €50 million for leading platform provider in digital music production and DJing
- Long-term build-and-scale strategy with active support based on partnership
- Third investment of EMH Digital Growth Fund
Munich/Berlin, 19.10.2017. Private equity firm EMH Partners has today announced that it has invested around 50 million euros in Native Instruments. The Berlin-based company is the leading manufacturer of software and hardware for digital music production and DJing. The investment will help accelerate rapid international growth and further strengthen the company’s footprint in the consumer music creation market.
The active founders of Native Instruments also invested a mid-single digit million amount alongside EMH Partners, in order to increase their shareholding. Together with the remaining founders they retain the majority stake in Native Instruments. EMH Partners now holds a significant minority share in the company. This is the third investment of the EMH Digital Growth fund, which had its final closing in June 2017 at the hard cap volume of €350 million, complemented by an additional €350 million co-investment programme.
Native Instruments – made in Germany with international significance.
“Native Instruments perfectly matches our investment philosophy. A medium-sized company with a proven business model and major digital value-creation potential,” said Sebastian Kuss, Managing Partner of EMH Partners. “The company is a true showcase for technology ‘made in Germany’ with a global impact. It combines traditional German virtues and engineering skills with creativity and agility – an outstanding asset that makes the difference in today’s fast moving business world.”
Native Instruments was founded in 1996 with the mission to develop innovative, fully-integrated solutions for all musical styles and professions. Today the company’s products are not only used by a vast majority of producers, musicians and DJs such as Depeche Mode, Alicia Keys, Skrillex, Carl Cox, Kendrick Lamar and Hans Zimmer, but also by an increasing number of hobby users. Native Instruments generates annual revenues of €80 million at highly attractive EBITDA margins. It employs more than 500 people operating out of Berlin, Los Angeles, Tokyo, Paris, Toronto, London and Shenzhen.
Into the next growth phase with EMH Partners.
“Native Instruments has written a remarkable success story since its foundation over 20 years ago, and we are now ready for the next chapter,” said Daniel Haver, CEO of Native Instruments. “By developing intuitive and powerful products we’ve empowered music creators and DJs globally to further realise their potential. Today we’re seeing demand from increasingly diverse market segments, which opens enormous potential. With EMH Partners we now have a strong partner at our side to kick off the next growth phase.”
As a growth investor EMH Partners is dedicated to promoting the digitalisation of European small and medium-sized enterprises following a long-term build-and-scale strategy. Along the way, EMH Partners will provide genuine added value that goes well beyond the capital invested. Based on a partnership-dedicated approach, Native Instruments will profit from the digital expertise and entrepreneurial background of EMH Partners. The private equity firm will predominantly invest in the technological development of Native Instruments and its marketing and sales efforts. On top, EMH Partners’ extensive network of industry experts will open doors with relevant decision makers.
Native Instruments is the third investment of the EMH Digital Growth Fund, which was closed in June 2017 with a volume of €350 million. Besides Native Instruments, the portfolio comprises the multichannel kitchen retailer Kiveda Group and Occhio, the market leader in high-quality design lighting.
About EMH Partners
EMH Partners is a European private equity firm by entrepreneurs, for entrepreneurs, with offices in Munich and London. EMH Partners represents the next generation of private equity firms. It bridges the gap between venture capital and buyout funds by supporting the growth of small and medium-sized enterprises through capital and digitalisation expertise. The entrepreneurs Maximilian and Sebastian Kuss founded EMH Partners in 2010. In 2017, EMH Partners closed its EMH Digital Growth Fund with a volume of €350 million. The investment volume totals €700 million including a co-investment programme with its investors. EMH Partners pursues a build-and-scale strategy and provides its portfolio companies with support built on partnership.
For more information, visit http://emh.com/
About Native Instruments
Native Instruments is the leading manufacturer of software and complementary hardware for computer-based music production and DJing. The company’s mission is to develop innovative, fully integrated solutions for all professions, styles and genres empowering all music creators. The resulting products regularly push technological boundaries and open up new creative horizons for professionals and amateurs alike. Native Instruments opened up the fascinating world of real-time sound synthesis on standard computers in 1996, and today offers an extensive product range for musicians, producers and DJs. The company currently employs more than 500 people in its seven offices in Berlin, Los Angeles, Tokyo, London, Toronto, Paris, and Shenzhen and works closely with more than 40 international distribution partners to ensure its future growth and success.
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