Victoria-based holding company Tiny has bought a controlling 66 percent stake in Serato, one of the best-known brands in DJ software, for $66 million USD ($94.5 million CAD).
Purchase follows a blocked $81.6 million CAD merger between Serato and AlphaTheta in August 2024.
Tiny is making the purchase with a combination of cash and common shares. The cash portion is $42 million USD and the deal values Serato at $175 million, according to the New Zealand Herald. The company expects to close the deal in the second quarter of 2025 provided regulators and shareholders approve. Serato will remain headquartered in New Zealand. BetaKit has reached out to Tiny for more details on the deal.
The two companies share a “unified vision for Serato’s future” that includes “strategically and thoughtfully expand[ing] upon its strong legacy,” according to Tiny CEO Jordan Taub. Tiny added that the deal should boost its annual recurring revenue by approximately 45 percent, to between $55 million and $57 million.
Serato co-founder AJ Wilderland said the move “accelerates” his company’s growth while staying true to the “community of artists” that use its software.
Serato launched in 1998 and is best known for Serato DJ, a popular line of software for mixing music during live sets. The company also develops production software like Serato Studio and plugins like Serato Sample. Pioneer, Roland, and other major music hardware manufacturers build mixers and other controllers that integrate tightly with Serato’s software.
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The move comes relatively soon after a failed merger. New Zealand’s Commerce Commission blocked AlphaTheta, owner of the hardware and software company Pioneer DJ, from acquiring Serato in August 2024 in a deal that would have been worth over $100 million New Zealand dollars (about $81.6 million CAD). Regulators were concerned the move would “substantially” reduce competition in the DJ software space.
Tiny has made a string of key acquisitions and investments across multiple industries since it was founded in 2007. These include interface designer MetaLab in 2017, career site Girlboss in 2020, coffee maker brand AeroPress in 2021, and movie-focused social media platform Letterboxd in 2023. Serato chief Young Ly cited Tiny’s “unique long-term approach and track record” with these companies as a reason to get “excited” for the new deal.
The holding firm faced upheaval in June 2024 when co-founders Andrew Wilkinson and Chris Sparling stepped down as co-CEOs, with Taub leaving e-commerce company WeCommerce to take the helm. Tiny’s stock price fell 16 percent after word news that Wilkinson would sell $8.4 million in shares, although most of those proceeds went to Wilkinson’s Tiny Foundation fund as well as early employees from companies like MetaLab.
Image courtesy of Arthur Edelmans via Unsplash.