Tiny Ltd. Acquires Serato Audio Research in $66 Million Strategic Move, Backed by Roth Canada

Tiny Ltd., a technology company listed on the TSX Venture Exchange, has completed a substantial acquisition of Serato Audio Research, a prominent global audio software company. The transaction, valued at US$66 million, demonstrates the company's strategic commitment to expanding its digital technology portfolio.

The acquisition involves a multifaceted payment structure, including US$23.6 million in Tiny's common shares and US$42.4 million in cash. Financial experts noted the transaction implies a valuation of 3.2 times annualized revenue and 9.6 times adjusted EBITDA, based on Serato's financial performance for the nine months ending September 30, 2024.

Roth Canada played a pivotal role in facilitating this transaction, serving as the exclusive financial advisor to Tiny Ltd. Beyond advisory services, the firm also co-led significant financing efforts, including a C$20 million bought deal public offering of 17.4 million subscription receipts and a C$36.1 million private placement of convertible debentures.

The total transaction financing of C$56.1 million underscores the comprehensive nature of this strategic acquisition. For Tiny Ltd., this move represents a significant step in potentially expanding its technological capabilities and market presence in the audio software industry.

By acquiring a majority 66% stake in Serato Audio Research, Tiny Ltd. positions itself to leverage the established audio technology company's expertise and market reputation. The transaction suggests a strategic vision of growth and technological innovation in the digital platform and software sectors.