Investor takes majority stake in Cambridge Sound
Barkby Group has bought 75% of sleep technology products developer Cambridge Sound for £6m.
The Cambridge company uses audio technology to help the brain reset its natural sleeping cycle and targets the underlying causes of insomnia.
The listed investment company said the firm’s co-founders will retain the remaining 25% shares.
The deal consists of an upfront cash consideration of £750,000 and deferred consideration payable in cash over five years of up to £5.3m, which is dependent on performance targets.
Barkby, which will also invest £1.5m to grow the firm, has an option to acquire the remaining shares for £5m prior to end of 2021.
“Approximately one in three people globally suffer from insomnia and poor sleep patterns and the team at Cambridge Sound Technologies has developed a revolutionary product that tackles the underlying cause of poor sleep,” said Barkby Group Executive Chairman Charles Dickson.
“Their focus on research and innovation has created a product that could potentially improve the lives of millions of people suffering from sleep related issues.
“Barkby is committed to constantly seeking out new opportunities and delivering value to our stakeholders and this Acquisition is firmly aligned with our strategy. I am delighted to add it to our portfolio of businesses.”