Powersoft Acquires 51% of Share Capital of K-Array with Option to Reach 100% Powersoft S.p.A. at the head of a technology group operating worldwide in pro-audio systems and listed on Euronext Growth Milan, announces the signing of a binding investment agreement to acquire from H.P. Sound Equipment S.p.A. 51% of the share capital of K-array S.r.l., specialized in the design and manufacture of high-performance, compact design audio systems for a wide range of applications. The agreement also envisages the mutual granting of call and put options in favor of Powersoft and HP Sound, respectively, on the remaining 49% of K-array's share capital. The closing of the transaction is, to date, expected by March 2025. Luca Lastrucci, CEO of Powersoft, says, "We are excited to announce this acquisition, a significant strategic step for our company and the professional audio market. This transaction arises from a successful partnership between two companies that have been collaborating for many years now, with a strong territorial proximity and sharing a creative and innovative spirit, both convinced of the potential to create important product and technological synergies. We plan to enrich our portfolio with cutting-edge products, leveraging the expertise and resources of K-array to develop new integrated audio solutions for an ever-evolving market. The synergy between Powersoft and K-array is set to generate significant results in technological innovation, allowing us to strengthen our presence in the segments where we already operate while also expanding into new areas. We can't wait to start working with K-array to set new and even higher standards of excellence." Alessandro Tatini, chairman and CEO of K-array, says, "Massimo Ferrati (CEO and co-founder) and I decided on this strategic step to integrate our company into a solid and constantly growing group like Powersoft. Our intention is to empower our resources, now over 100 and among the most qualified on the market, for a promising future filled with opportunities and success. In addition to growth in numbers, the goal is to strengthen a solid and cohesive foundation capable of tackling future challenges with greater resilience and determination. Our team has been integral to our growth journey, and we believe it is our responsibility to provide them with an even more ambitious vision for our project. We have been collaborating with Powersoft since the beginning, and beyond being neighbors and sharing an identity deeply rooted locally yet globally oriented, we are united by a strong passion for technology and sound. Their innovations have always been an essential part of our work, making it obvious to realize that joining forces could add significant value to the growth that, in recent years, has been in double digits, bringing us immense satisfaction. We are confident that this partnership will allow us to achieve incredible results in synergy. We are excited and eager to unleash our full creativity and potential." K-array, with over 100 highly qualified resources, operates primarily through three brands targeting different market segments: K-array, the company's main brand focused on audio professionals,; K-Gear, dedicated to traditional and more affordable audio solutions, and K-Scape, specializing in high-quality audio and lighting systems that combine sound and lighting excellence with sophisticated design. K-array's revenue on December 31, 2023, amounted to approximately 19 million euros, with a reported EBITDA of approximately 3.7 million euros. Based on the preliminary results on December 31, 2024, K-array expects revenue of approximately 22.1 million euros (up more than 16% versus the prior year) and EBITDA of approximately 6.6 million turos (+76%). The net financial position on December 31, 2024, is impacted by the transfer to K-array (made under the transaction) of intellectual property rights and certain HR and accounting employees from HP Sound. The acquisition is also part of Powersoft's growth strategy to transform the group from a product company to a solution provider with a primary focus on the transportation and automotive sectors, where technological innovation, efficiency, and the reliability of audio systems play a key role. Mention should be made in this regard of the recent technology partnership signed with Ferrari S.p.A., which marked Powersoft's entry into the supercar industry. At present, Powersoft plans to finance the acquisition primarily through bank financing, for which a favorable resolution has already been obtained from a leading bank, with the remaining portion to be covered by existing cash funds available. The completion of the acquisition, expected by the end of March 2025, is subject to the fulfillment of certain conditions precedent typical for this type of transaction, including the absence of events that could significantly impact K-array's business or operating-financial position. 
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