A Hong Kong-based consortium buys out SEED Capital from Libratone, takes a majority shareholding position.

Rapidly growing speaker company Libratone to speed up innovation and expansion efforts under new ownership.

A Hong Kong-based consortium has entered into an agreement to acquire a majority shareholding in Danish wireless speaker company Libratone A/S.

The consortium consists of financially strong Asian business people and Libratone’s management, including CEO and co-founder Tommy Andersen.

“The new owners are investing in bringing Libratone to a global leadership position. They bring financial and business resources so Libratone can accelerate product innovation, geographic expansion and brand building. We now have the optimal conditions to realize our full potential,” says CEO Tommy Andersen.

Libratone develops and designs wireless speakers that stream music in excellent sound quality from devices such as smartphones, tablets, Mac and PCs. By aligning the audio experience with 21st century lifestyle and using forms and colours in unconventional ways, Libratone appeals to quality-conscious, design-oriented buyers.

The company’s new ownership sees strong potential in leveraging the Libratone brand to launch additional wireless product categories.

Founded in 2009, Libratone launched its first speaker late 2010 and has since then recorded +60% compound annual growth rates. 2014 revenue is expected to exceed DKK 100 million (USD 20m). The new owners intend to multiply the business and eventually build the basis for a public listing in Hong Kong.

Libratone’s speakers are available in more than 1,300 stores world-wide, including audio/video specialists, design concept stores, Apple stores and Apple Premium Resellers. Moreover, the speakers are sold through a range of online stores globally. Part of its global expansion strategy, Libratone recently started establishing a foothold in Asia. After entering South Korea, Japan and Taiwan, the company is now taking the first steps into the vast Chinese market. The new owners are committed to accelerate the Asian build-up while also expanding distribution and sales channels in Europe and North America.

The change of ownership implies that the venture fund SEED Capital exits its investment in Libratone. SEED Capital took part in Libratone’s first external funding in December 2010 and, through additional funding, SEED Capital became the largest single shareholder:

Libratone management and workforce continue unaffected by the change of ownership. The company employs approx. 50 staff in 5 locations: The headquarters in Copenhagen, Denmark; the R&D and logistics centre in Skive, Denmark; the North American sales and service centre in Boston, Massachusetts; the Middle East sales office in Dubai and the new Asian sales office in Shanghai, China. The new owners expect to expand the Danish activities alongside accelerating the globalization of the company by establishing new R&D and sales entities in Asia, EU and USA.