Canada-based holding company Tiny announced it has acquired a controlling stake in DJ software company Serato for C$94.5 million ($66 million USD). This deal is being made through a combination of cash and common shares. The cash amount is $42 million, and Serato is valued at $175 million. The deal is expected to close in Q2 of 2025.
The deal represents a significant milestone in Tiny’s strategy to build a diversified portfolio of category-leading technology businesses with strong recurring revenue, organic growth, and profitability.
These are some of the details about the deal:
1.) Category Leader – Serato is a globally recognized leader in DJ software, with a loyal user base and significant market share built over the last 25 years
2.) Portfolio Expansion – The deal supports Tiny’s portfolio with a growing and profitable software business with opportunities for further expansion
3.) Growth Acceleration – In close collaboration with Serato’s management team, Tiny developed a strategic plan to drive accelerated growth. And this includes a focus on advancing the product roadmap, strengthening digital marketing efforts, and applying other operational best practices
4.) Aligned Leadership Team: Serato’s management team remains in place with long-term incentive plans focused on growing intrinsic value, ensuring continuity and alignment for the next stage of growth
5.) Combined Financial Strength – Tiny management anticipates that the acquisition will significantly boost annual recurring revenue, earnings and cash flow, while maintaining the current net leverage ratio and allowing the company to continue to reduce its net leverage
Adjusted to reflect Tiny’s acquisition of 66% of Serato, Tiny’s ARR is expected to increase by approximately ~45% to a range of $55 million to $57 million.
For 25+ years, Serato’s innovative software has redefined how DJs, producers, and artists worldwide create and perform, with a portfolio of industry-leading software including Scratch Live, Serato DJ, Serato Sample, Studio, and the recently introduced Hex FX. And among these, Serato DJ stands out as one of the most widely adopted and globally recognized DJ software platforms. Serato’s software is often integrated directly into leading hardware providers, consistently introducing new users into the ecosystem.
Serato will continue to be based in New Zealand.
KEY QUOTES:
“We are thrilled to announce our acquisition of Serato, one of the most iconic brands in DJ software. Through our extensive meetings with Serato’s founders and team, it is clear we have a unified vision for Serato’s future and how to strategically and thoughtfully expand upon its strong legacy. Serato represents the ideal acquisition for Tiny with its market leadership, long history of growth and profitability and unparalleled track record of innovation. This acquisition perfectly demonstrates our investment thesis: partnering with exceptional businesses, supporting their continued growth, and generating long-term value for our shareholders.”
– Jordan Taub, Tiny CEO
“We’ve always believed that Serato’s strength lies in our ability to innovate and stay true to our community of artists. After 25 years of building and guiding this business with my co-founder Steve, we couldn’t ask for a better partner than Tiny. Their long-term vision and strategic approach align with the future we’ve always envisioned for Serato. This partnership not only accelerates our growth but also provides the ideal long-term home for the next chapter of the business we’ve nurtured from the ground up.”
– AJ Wilderland, Co-founder of Serato
“Serato’s long history of success is driven by a single-minded focus of serving artists. We are incredibly proud of the strength of our business today, and the loyal users that surround us. We are excited by the many ways Tiny’s unique long-term approach and track record with companies like Letterboxd, AeroPress and Metalab accelerate how we create value for our users, while retaining our headquarters in New Zealand. This is strengthened by their respect for our legacy and growth mindset for the future of our business.”
– Young Ly, CEO of Serato
