In a continued strategy of growth, Amber Technology is set to acquire the distribution business of Convoy International, having reached an agreement earlier this month.

The transaction is expected to be completed on or about 31 January 2023.

Consideration for the acquisition is anticipated to be, net cash, in the order of $2.8m to $3m and includes: inventory and accounts receivable dependant on valuation at settlement; business use assets; and, goodwill of around $0.5m subject to final valuation.

Funding for the acquisition is through existing cash reserves while initial incremental revenue growth from the transaction is expected to be $4m – $5m annually with ongoing growth potential.

Under the agreement between Amber Technology and Convoy, key Convoy staff will be offered the opportunity to join the Amber Technology team as significant brands distributed by Convoy will become part of the Amber Technology portfolio.

Peter Amos, managing director of Amber Technology says: “We are very pleased to be adding prestigious Convoy brands to our portfolio such as NAD, Bluesound, and JBL Home. These brands allow us to expand our solutions for residential installers and specialist HiFi dealers and consolidates our position as the supplier of choice to these markets.”

Robert Glasson, chief operating officer at Amber adds: “We have established a strong set of acquisition criteria as a fundamental element of our growth strategy, and Convoy is a business that we have been following for many years. Identifying premium brands, strategic relationships and quality people remains key. Delivering growth without compromising the support we provide for our brands in the market is critical.”

Convoy managing director, David Matthews, says that the development “marks the end of my family’s active participation in the Australian HiFi market.”

He adds: “We are grateful for the support and friendship of our suppliers over many years, and we are pleased that we’ve been able to find a great home at Amber Technology for our Convoy business. We extend our thanks to the many staff and customers who have been part of the Convoy journey over the last 57 years, and our best wishes to all involved for a bright future at Amber Technology.”