Native Instruments, EMH Partners, and Francisco Partners announce an agreement to sell the majority shares of NI to leading technology-specialized investment firm, Francisco Partners. Both EMH Partners and the founding shareholders will remain involved with NI as significant minority shareholders.
In 2017, EMH Partners invested 50 million Euros in Native Instruments, followed by a further investment in 2020 to achieve majority ownership in the company. The management and board of Native Instruments, together with EMH, have developed the company significantly and expanded its position in the industry:
- Monthly active users more than doubled to 1.5m by the end of 2020.
- Revenues in NI’s music creation tools increased by 60% since the investment in 2017.
- Industry partners on Native Instruments’ technology platforms increased by 60%, cementing the company’s global technology leadership.
Since the company’s formation in Berlin in 1996, Native Instruments has established itself as the leading manufacturer of software and hardware for computer-based audio production and DJing. Today, NI is one of the largest and most influential companies in the music technology industry, providing creative tools to millions of music creators, and employing more than 400 staff throughout its seven offices worldwide. In August 2020, NI announced a new leadership team, marking a fresh chapter in the company’s 25-year history.
With the support of Francisco Partners, Native Instruments is now planning to further enhance its product experiences, building on the company’s leadership in technological innovation and deep connections within the community and industry to create more seamless experiences for music creators, with more accessible points of entry for new and established creators alike.
Constantin Koehncke, CEO of Native Instruments, says:
“There’s never been a more exciting time in music, with more creators producing more high-quality music all around the world. We’re thrilled to team up with Francisco Partners to enter the next phase of our journey, combining their global resources and expertise with our passionate team, deep relationships within music and proven track record of technical innovation. Together we can realize our mission to empower and inspire the global community of music creators and help them to unlock their creative potential.
Thanks to the support of EMH Partners over the past years we were able to further reinforce and expand our position as the leading digital music creation company, and now look forward to working with Francisco Partners, EMH Partners and the founding shareholders to continue on this amazing journey.”
Matt Spetzler, Co-Head Europe and Partner at Francisco Partners, who will join the Native Instruments board of directors adds:
“As an innovator in digital music creation, with a supreme brand recognition and outstanding software technology, Native Instruments is a perfect platform and partner for Francisco Partners. We look forward to working together with the management team and the existing shareholder group, utilising our broad operational and strategic experience and M&A capabilities to help the company accelerate its growth trajectory.”
More information: Native Instruments
