QSC to Be Acquired by Acuity Brands

QSC, the Costa Mesa, CA-based audio manufacturer has announced that it is being acquired by Acuity Brands, Inc, an industrial technology company that supplies lighting and building management solutions. Acuity is based in Atlanta, Georgia, with operations across North America, Europe, and Asia and it acquired QSC not because of their audio amplifiers and professional audio loudspeakers, but because the Californian company has greatly expanded its systems integration business under the brand Q-SYS. Today, Q-SYS is a market leader in the design, engineering, and manufacturing, of audio, video and control solutions. Q-SYS is also a cloud-first platform built on a modern, standards-based IT architecture. With established solutions across Corporate, Education, Hospitality, Venues, Events, Cinema, Government, Healthcare, and Transportation, Q-SYS is described as a company “redefining possibilities for live, hybrid, and virtual experiences.” QSC Audio complements these Q-SYS offerings with high-performance loudspeakers, digital mixers, power amplifiers, software, and accessories.

“Bringing QSC together with Acuity underscores the critical role AV technology plays in live, hybrid, and virtual experiences,” says Joe Pham, Chairman and Chief Executive Officer of QSC. “Our two organizations are aligned on a long-term mission and core values that drive our mutual passion for innovation, customer satisfaction, and employee well-being. QSC will become part of Acuity’s Intelligent Spaces Group to execute our joint vision of making spaces smarter, safer, and greener with disruptive technologies that leverage data interoperability.”

“From our roots in pro audio to our Q-SYS platform solutions, our talented teams are well-positioned to bring our mission to life for our customers, ecosystem partners, and our system integrators who serve them,” adds Jatan Shah, President of QSC. “With Acuity’s Intelligent Spaces Group, our rich landscape of data will deliver dynamic and engaging experiences that captivate and inspire.”
 
Acuity agreed to acquire QSC for a purchase price of $1.215 billion, or $1.1 billion net of approximately $100 million in present value of expected tax benefits. The net purchase price represents approximately 14 times QSC’s estimated EBITDA for the last twelve months ending August 31, 2024. QSC delivered sales of approximately $535 million for the twelve months ending August 31, 2024.

“In our Intelligent Spaces business we are delivering meaningful outcomes for end users that are powered by disruptive technologies and that generate strong financial results,” said Neil Ashe, Chairman, President and Chief Executive Officer of Acuity Brands, Inc. “QSC has built a differentiated cloud-manageable audio, video and control platform that controls what happens in a built space. Our acquisition of QSC builds on our vision of data interoperability as we continue to make spaces smarter, safer and greener.”

Acuity will be funding the transaction using $600 million of term loan financing and the remainder with cash on the Balance Sheet. The transaction is expected to close in the second-quarter of fiscal 2025, subject to customary closing conditions.
www.qsc.com
www.acuitybrands.com