On March 31, 2025, Tiny Ltd. (TSXV: TINY), a Canadian technology holding company, announced it had entered into a definitive agreement to acquire a 66% controlling interest in Serato Audio Research Limited for US$66 million (approximately C$89 million). Serato, a New Zealand-based global leader in DJ software with over 2 million users, has achieved a 35% CAGR in paid subscribers over five years and reported an annualized revenue of US$42.4 million with a 34% EBITDA margin. The deal values Serato at 3.2x revenue and 9.6x adjusted EBITDA.

The acquisition will be financed through a combination of cash, equity (including the issuance of 29.4 million shares), a C$20 million bought deal offering of subscription receipts led by Canaccord Genuity Corp. and Roth Canada, Inc., and a C$32 million private placement of convertible debentures. Closing is expected in Q2 2025, subject to regulatory and customary conditions.

Post-acquisition, Tiny anticipates a 68% increase in annual recurring revenue (ARR) to C$64–66 million, and a ~45% rise in adjusted EBITDA to C$42.5–46.5 million, while maintaining a net leverage ratio of approximately 3.1x. Serato’s leadership will remain in place, supported by a new shareholders’ agreement.

Legal counsel to Tiny includes Norton Rose Fulbright Canada LLP and Chapman Tripp. The Raine Group advised Serato, with Avid.Legal as counsel. Blake, Cassels & Graydon LLP acted for the Underwriters.