Emmis Communications Corporation (Nasdaq: EMMS) currently owns 4 FM and 2 AM radio stations in New York and Indianapolis, as well as Indianapolis Monthly magazine. Emmis also owns a controlling interest in Digonex, a company providing ticketing systems and dynamic pricing solutions across multiple industries, and now adds Lencore, a manufacturer of high-quality sound masking solutions for offices and other commercial applications. This seems to be a pure investment diversification strategy from the part of Emmis' management. Other than having a very strong sales team that apparently needed something else to sell, there's no explanation as why a media company would acquire a manufacturer and supplier of audio masking solutions. (Transmitting white noise on FM and AM is possible, but probably not a good idea)
"Today's announcement is the product of a long process, looking for the right place to infuse the Emmis hallmarks of sales and marketing excellence," explains Jeff Smulyan, Chairman & CEO of Emmis. "Emmis' experience in building best-in-class operations, coupled with its unique people-first culture is the perfect fit to complement the talented Lencore team, and will give them the resources and support necessary to grow the business. We believe that the continued move toward open-concept offices makes effective sound masking solutions more and more important. We're excited about where this business can go."
"I couldn't be more pleased with today's announcement," says Lencore President Jonathan S. Leonard. "I have been involved in the sound masking industry for more than 30 years with a single professional quest to build the very best sound masking products with the very best people. I believe that Jeff Smulyan and the Emmis team will continue with this quest to build a robust business and take Lencore to places I have dreamed. This is an exciting time for the entire Lencore team and the sound masking industry."