AwoX, a self-professed smart home company, acquires 100 percent of the shares of French audio company Cabasse from the Canon Group for €2 million and earn-outs of up to another €2.5 million.

Created in 1950, Cabasse is well-known in electroacoustic for its range of high-end acoustic loudspeakers, home integrated sound systems and connected high-fidelity speakers.

The acquisition comes after five years of collaboration: AwoX supplies Cabasse with connectivity solutions (electronic modules and iOS and Android software) and works on the development of numerous audio products, including the AwoX StriimSOUND — a high-fidelity Wi-Fi speaker with sound engineering by Cabasse, released in 2014.

This acquisition, says AwoX, will enable the company to enhance its offer of smart home connected audio solutions with the extensive range of high-end audio products and systems produced by Cabasse.

In turn, Cabasse will benefit from AwoX’s expertise in Wi-Fi connectivity technologies to further develop its effort in best-of-breed audio streaming. It will also benefit from AwoX’s industrialization, manufacturing and sourcing infrastructure. Lastly, AwoX will assist with the sales and marketing of Cabasse products on a global scale, and particularly in No.America and the Asia-Pacific region.

In merging their activities, AwoX and Cabasse will form one of the world’s leading specialists in high-end Smart Home audio streaming solutions.

In an age of dematerialization and the increasing distribution of music through mobile devices (smartphones, tablets), the audio streaming market has developed exponentially, notching up annual growth of around 50 percent in 2014 alone (Source: Nielsen – US Market – 07.2014).

With a turnover of approximately €7 million, Cabasse employs around 30 members of staff based in Brest in north western France. Pro-forma, the new entity generated turnover of close to €14 million in 2013 and employs some 80 members of staff.

AwoX raised €21.5 million during its IPO on Eurolist in April 2014.

This acquisition of Cabasse fits AwoX’s strategic roadmap. And it still has nearly 18 million euro leftover to build or acquire.

It’s doubtful that many audio companies could today raise €21.5 million in an IPO… and that leaves us to think smart home companies may gain an advantage and absorb more audio and video companies.

AwoX is here.