3 M&A deals that should happen in MI
For those of us who have dedicated our lives to the music and audio industry, what we do is more than just business. It’s about serving the creators, the makers, and the dreamers who bring music and sound into the world. And it’s also about fostering and stewarding a vibrant, sustainable industry that nurtures innovation and creativity, ensuring that every music creator, engineer, and producer has access to the tools they need to express themselves fully.
In today’s MI (musical instrument) market, strategic consolidation isn’t just a business strategy—I’d argue it’s a necessity for ensuring the long-term health and vitality of our industry.
Through thoughtful mergers and acquisitions (M&A), companies can combine strengths, pool resources, and create something truly greater than the sum of their parts.
Important Disclosure: I currently or previously have had business relationships with many of the companies mentioned in this article. No nonpublic information is disclosed or alluded to in this article, and nothing written in this article should be taken to indicate any intentions, plans, or strategies that have not been publicly disclosed. This article does not in any way represent these companies, and does not speak on their behalf.
This article proposes three theoretical examples of strategic combinations benefitting music makers, engineers, and producers:
RCF’s acquisition of Electro-Voice and Dynacord from Bosch and PreSonus from Fender
Native Instruments’ acquisition of Image-Line, maker of FL Studio, and LANDR
Zildjian’s acquisition of Noble & Cooley and Alesis Drums from InMusic
These deals aren’t just about expanding market share—they’re about fostering innovation, ensuring sustainability, and ultimately, serving the music makers and the ecosystem that supports them.
The Importance of Consolidation in a Challenging MI Landscape
The music industry, particularly the sector that develops and delivers the tools and technologies used by creators, is facing unprecedented challenges. Economic pressures, rapidly evolving mass-market technologies, and shifting consumer behaviors are all reshaping how companies in the industry operate. In this environment, consolidation can offer not only a lifeline for the companies involved, but tremendous benefits for the artists, engineers, and listeners who depend on us.
Innovation: Innovation has always been the lifeblood of our industry. But innovation requires investment—investment in R&D, in talent, and in new technologies. Larger, better capitalized companies are in a better position to make these investments, driving the development of new tools, technologies, and solutions that smaller players simply can’t afford to explore.
Cohesive Solutions: We’ve all experienced the frustration of dealing with products that don’t quite work together. In a fragmented market, musicians and producers are often left cobbling together solutions from various sources, leading to inefficiency and too much time spent dealing with the tools rather than creative flow. Through customer-driven strategic consolidation, we can create cohesive, integrated ecosystems where every tool, from the DAW to the plugins to the hardware, works seamlessly together.
Resilience and Growth: The reality is that smaller companies, no matter how innovative, are more vulnerable to economic downturns and competitive pressure. We’ve seen too many promising companies falter because they lacked the financial stability to weather the storm. By consolidating, we can build stronger, more resilient organizations that can continue to innovate and serve the community, even in tough times.
Ok, enough preamble, let’s build some winners.
RCF: Further Strengthening the Pro Audio Foundation
The RCF Group consists of brands known for excellence in pro audio. RCF is celebrated for high-quality loudspeakers and audio systems for live sound and installed applications. dBTechnologies is recognized for user-friendly sound reinforcement solutions, particularly in portable PA systems. EAW (Eastern Acoustic Works) is a legendary name in live sound, revered for unparalleled audio precision and control. DPA Microphones deliver pristine audio capture for both studio and live environments. Montarbo is known for robust, reliable amplification and mixing solutions that serve a wide range of audio needs. When I look at the RCF Group and its independently operating brands, I see a company committed to building something enduring for the long term.
In considering deals, I think RCF wouldn’t just be looking to expand its product lineup; it would be striving to create a comprehensive, integrated audio ecosystem that can serve the needs of live sound professionals, venue operators, and integrators.
RCF’s acquisition of Electro-Voice (EV) and Dynacord from Bosch, and PreSonus from Fender, would be a strategic move grounded in a deep understanding of the needs of audio professionals. By bringing EV into the fold, RCF gains access to a storied brand with a legacy of excellence in microphones, particularly in the broadcast and live sound sectors, and with a reputation for dynamic microphones, a great compliment to DPA’s strength in condensers. Dynacord’s amplifiers and mixers, known for reliability, complement RCF’s existing portfolio, expanding the applications and use cases covered. When you add PreSonus into the mix, with its popular digital mixers and interfaces, RCF would be strengthened to to serve a broader market—from the largest live events to intricate systems in schools, houses of worship, and corporate environments.
With these acquisitions, RCF could funnel increased cash flow into R&D, driving innovations that push the boundaries of what’s possible in sound reinforcement, mixing, and audio distribution. This isn’t just about growing bigger—it’s about growing better, ensuring that the engineers, sound technicians, and performers who rely on these tools have access to the best technology the industry has to offer.
Native Instruments: Building a Future-Ready Creation Platform
Native Instruments is a cornerstone in the music production world, known for its pioneering software and hardware that empower musicians and producers worldwide. Native Instruments itself offers industry-leading virtual instruments, soundware, and essential hardware studio instruments and tools. iZotope is celebrated for its innovative audio processing and mastering tools. Plugin Alliance and Brainworx bring together powerful and versatile plugins known for precision and rich sound design. Sound Stacks creates audio platform technologies for audio developers.
Native Instruments’ theoretical acquisition of Image-Line (FL Studio) and LANDR, would be another example of a company thinking not just about its own future, but about the bigger picture of the music-creation experience. By integrating the group’s portfolio of plug-ins and sounds directly into Image-Line’s popular DAW, FL Studio, Native Instruments would create a complete (no pun intended) platform for music creation and production. And with LANDR in the fold, they’d add AI mastering, cloud collaboration, and distribution to the mix, creating an ecosystem that takes a track from downbeat to final release.
Zildjian: Honoring Tradition While Embracing Innovation
Zildjian has long been the gold standard in cymbals (there’s a dad joke in there but I’m setting it aside), now in its fifth century of commitment to the drumming community. Expanding its reach, Zildjian is also home to Vic Firth drumsticks and mallets, and Mike Balter mallets. The company added BAC Audio, an extremely senior and talented group of seasoned electronic drum engineers who previously helped Roland and ATV achieve electronic percussion success. BAC’s expertise was instrumental in creating the recently introduced ALCHEM-E complete electronic drum sets, delivering a compelling new electronic drumming experience.
Zildjian’s theoretical acquisitions of Noble & Cooley and Alesis Drums from InMusic would be a powerful way the company can honor its rich history while boldly stepping into the future. Zildjian has been synonymous with cymbals for 16 generations of the Zildjian family, but this move shows that they’re not content to rest on their laurels. By bringing together Noble & Cooley’s handcrafted acoustic drums with Alesis’s innovative electronic kits, Zildjian would be positioning itself to serve drummers across the spectrum—from the traditionalist to the electronic experimentalist. Imagine the impact an ALCHEM-E kit with Zildjian cymbals, Noble & Cooley drums, and Alesis technology could have—as well as the ability to achieve rapid line extension across product categories and price points.
The additional resources that would come from this combination would allow Zildjian to invest in new technologies and hybrid instruments, creating instruments that reflect the changing landscape of drumming and music-making, while staying true to the legacy and craftsmanship that define the brand.
Customer-Centric Conclusion
Strategic consolidation is more than just a path to growth—it’s a critical step towards securing the future of the music and audio industry. As we’ve seen with these concept deals, these moves are about much more than expanding market share. They’re about customer-centricity: fostering innovation, creating better, more-integrated solutions, and ensuring that our industry remains strong, resilient, and responsive to the needs of the music makers we serve.
As someone who’s spent a lifetime in this industry, I believe in the power of music to bring people together, to inspire, and to underpin happiness and fulfillment. And I believe that through thoughtful, strategic consolidation, we can build a stronger, more-innovative industry that continues to serve the creators, the dreamers, and the music lovers for generations to come.