QSC, LLC has announced it has reached a definitive agreement to be acquired by Acuity Brands, Inc for a purchase price of $1.215 billion, or $1.1 billion net of approximately $100 million in present value of expected tax benefits.
The net purchase price represents approximately 14 times QSC’s estimated EBITDA for the last 12 months ending August 31, 2024. It is expected to be accretive to Acuity’s’ fiscal 2025 full-year adjusted diluted earnings per share.
Acuity Brands, Inc. is an industrial technology company that uses technology to solve problems in spaces, light, and more things to come.
Through two business segments, Acuity Brands Lighting and Lighting Controls (ABL) and the Intelligent Spaces Group (ISG), Acuity designs, manufactures, and brings to market products and services designed to make a difference in people’s lives.
Acuity achieves growth through the development of innovative new products and services, including lighting, lighting controls, building management solutions, and location-aware applications.
Achieving customer-focused efficiencies that allow Acuity to increase market share and deliver superior returns, Acuity looks to aggressively deploy capital to grow the business and to enter attractive new verticals.
Acuity Brands, Inc. is based in Atlanta, Georgia, with operations across North America, Europe, and Asia. Acuity is powered by over 12,000 associates.
QSC will become part of Acuity’s Intelligent Spaces Group to execute Acuity’s joint vision of making spaces smarter, safer, and greener with technologies that leverage data interoperability.
“In our Intelligent Spaces business we are delivering meaningful outcomes for end users that are powered by disruptive technologies and that generate strong financial results,” said Neil Ashe, chairman, president and chief executive officer of Acuity Brands, Inc. “QSC has built a differentiated cloud-manageable audio, video and control platform that controls what happens in a built space. Our acquisition of QSC builds on our vision of data interoperability as we continue to make spaces smarter, safer and greener.”
QSC delivered sales of approximately $535 million for the 12 months ending August 31, 2024.
QSC provides a cloud-manageable audio, video and control platform that includes controls, sensors and software with broad applications across multiple end-markets including education, commercial, hospitality, government, healthcare and transportation.
“We are excited to be joining a company that is aligned around our long-term mission and shares our values,” said Joe Pham, chairman and chief executive officer of QSC. “Our shared vision of how we can leverage data with our technology solutions will elevate our ability to service our end-users and drive growth.
“Bringing QSC together with Acuity underscores the critical role AV technology plays in live, hybrid, and virtual experiences. Our two organisations are aligned on a long-term mission and core values that drive our mutual passion for innovation, customer satisfaction, and employee well-being.”
Acuity Brands anticipates funding the transaction using $600 million of term loan financing and the remainder with cash on the Balance Sheet.
The transaction is expected to close in the second-quarter of fiscal 2025, subject to customary closing conditions, including, among others, the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
“From our roots in pro audio to our Q-SYS platform solutions, our talented teams are well-positioned to bring our mission to life for our customers, ecosystem partners, and our system integrators who serve them,” said Jatan Shah, president of QSC. “With Acuity’s Intelligent Spaces Group, our rich landscape of data will deliver dynamic and engaging experiences that captivate and inspire.”