Audio and speaker startup Libratone announced that is has been acquired by Hong Kong based investor group for a two-digit million euro amount.
“We have always been a Danish company that has been working to establish a global brand in audio. It is expensive to create a brand in the world, and this will mean that we will have completely different financial muscle to do it with, “says Tommy Andersen, CEO of Libratone to Politiken.
A strong growth sine 2009
Libratone designs and develops wireless speakers that can play music from smartphones, tablets and computers. Today, it’s speakers are available in over 1,300 stores worldwide. It’s regarded as one of the most innovative audio companies in the world. Founded in 2009 it’s goal is to give music the freedom modern wireless technology allows. The first speaker was launched in late 2010. Since then it has gone really fast for the company that has experienced an average annual growth of more than 60 percent. In 2014 Libratone is expecting a turnover in the range of € 15 million.
Great potential in Asia
The new consortium consists of financially strong Asian business people and Libratone’s management, including CEO and co-founder Tommy Andersen.
“The new owners are investing in bringing Libratone to a global leadership position. They bring
financial and business resources so Libratone can accelerate product innovation, geographic expansion
and brand building. We now have the optimal conditions to realize our full potential,” says Tommy.
Libratones wireless speakers are made for streaming music from devices such as smartphones, tablets, Mac and PCs. This, combined their minimalistic but colourful design, has made it appeal to quality-conscious, design-oriented buyers.
An exit for SEED Capital
The change of ownership implies that the venture fund SEED Capital exits its investment in Libratone. SEED Capital took part in Libratone’s first external funding in December 2010 and, through additional funding, SEED Capital became the largest single shareholder:
“We are proud to have been part of a 3½ year journey that has taken Libratone from being an entrepreneurial business to becoming an undisputed success. This is a prime example of how exceptional technology and design combined with financing can create great businesses. To SEED Capital, this exit is a distinct success,” says General Partner Lars Andersen at SEED Capital.
Libratone reports its management and workforce continue unaffected by the change of ownership. The company
employs currently 50 people in 5 locations: The headquarters in Copenhagen, the R&D and logistics centre in Skive (Denmark) and sales in Boston, Dubai and Shanghai. The new owners say they plan to expand the Danish activities alongside accelerating the globalization of the company by establishing new R&D and sales entities in Asia, EU and USA.
