The Audinate Group Ltd (ASX: AD8) share price is rising this morning.
At the time of writing, the ASX 300 tech stock is up 1% to $7.18.
This follows news that the audio-visual networking specialist is making a key strategic acquisition aimed at expanding its reach in the growing video segment.
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ASX 300 tech stock higher on big news
According to the release, Audinate has entered into a binding agreement to acquire US-based Iris Studio Inc.
It is a leading developer of AI-powered, cloud-based camera control technology.
According to the release, the deal will see Audinate pay US$20 million upfront, with a further US$8 million payable in a combination of cash and shares over three years. This is contingent on performance milestones and ongoing employment.
The transaction is expected to close in mid-July 2025, pending customary closing conditions. Post completion, Audinate will have a strong balance sheet with net cash of A$78 million.
Why this acquisition?
Audinate is best known for its market-leading Dante networking technology, which enables professional-grade audio to be distributed over standard IP networks. With this acquisition, the ASX 300 tech stock believes it strengthens its video platform capabilities and accelerates its vision for interoperable control and management of audio-visual (AV) devices.
Iris offers a control first video production SaaS platform which is initially targeting remote production use cases. However, management notes that there is significant longer-term opportunities in cloud-based management and control.
The Iris platform is offered as a software subscription and is in the early stages of market launch. Audinate will continue to invest in the platform to support market development and scale-up initiatives.
The ASX 300 tech stock's co-founder and CEO, Aidan Williams, believes the addition of Iris will significantly enhance the company's platform strategy. He said:
The addition of Iris to Dante's ecosystem is a major step forward for the Dante platform. Combining Iris's broad applicability and cutting-edge remote production capabilities with powerful cloud-based management software like Dante Director will provide significant value to AV professionals managing the millions of Dante-enabled devices in the field today.
Commenting on the deal, Iris' co-founder and CEO, Noah Johnson, said:
At Iris, we set out to rethink AV device control – intelligent, intuitive and accessible from anywhere. Partnering with Audinate gives us the scale, reach and deep AV expertise to accelerate our roadmap and bring our vision to the next level.
