Swedish audio company Dirac today announced the completion of a direct share equity issue that raised $17.73-million USD (150 MSEK), with the funding coming from current investor DIG Investment and a new investor in TIN Fonder.
According to Dirac CEO Peter Friedrichsen, the new equity raise values the company at just under $142.2-million USD (1.200 MSEK) and positions Dirac to fully leverage and lead what it believes will be the next great era in audio driven by software rather than hardware alone.
“Since the dawn of reproduced sound, advancements in audio performance have historically been driven by hardware innovation,” says Friedrichsen. “This paradigm began to shift when companies like Dirac first introduced technologies that demonstrated the ability of software to achieve new, higher levels of performance. Today, we believe that the future of sound is in the hands of software and, with this investment, we fully intend to make Dirac the driving force in audio industry innovation across all platforms, devices, and environments.”
Over the past 12-months, the company reports marked success across all of its core channels – home audio, pro audio, automotive, headphone, mobile, and streaming – striking key OEM deals with brands such as Onkyo, Pioneer, Philips, Hyundai, Volvo, Polestar, BYD, Klipsch, and ASUS, among others. It has also developed new sales channels, working directly with semiconductor and middleware companies – like NXP, Analog Devices (ADI), and CRI Middleware – to integrate Dirac audio directly into chipsets and platforms.
Dirac customers, in addition to the industry at-large, are realizing the many benefits of upgrading hardware performance through today’s most cutting-edge digital audio software. Costs are saved, new products are released more quickly, time-consuming tunings are made more efficient, sound profiles can be personalized to individual consumer preferences, and – ultimately – product performance is significantly improved.
Investors Share Dirac’s Company Vision
The direct share offering announced today raised $8.9-million USD (75 MSEK) from each investor, both of whom share the company’s vision of an audio industry fueled by innovations in software.
”Dirac has witnessed significant growth in recent years. It is our belief that the next generation of audio experiences will be software defined, and that a deep tech audio company like Dirac can be a significant player in that field,” says Carl Armfelt, portfolio manager, TIN Fonder. “The company has proven that digital audio software is capable of unlocking the full potential of hardware products, and that its suite of industry-leading, patented solutions will continue to usher in a new era of audio.”
Dirac has also recently realigned its senior leadership team to fully capitalize on this software-driven industry trend. Growth business veteran Peter Friedrichsen joined the company as CEO, freeing up former CEO Mathias Johansson to focus his energy and creativity on innovation as chief product officer.
U.S. tech industry veteran Wade Giles joined the company as VP of North America to drive new partnerships with semiconductor manufacturers, and Klas Åström was appointed chief financial officer.
“We have traveled a long way since company inception,” adds Friedrichsen. “We evolved from a niche designer of digital audio solutions for specific applications to a tier one company in audio technology, collaborating with many the world’s largest and most esteemed tech brands. Now, with our new funding and realigned executive leadership team, we’re poised to fully capitalize on our growth potential and intend to make Dirac synonymous with superior sound experiences around the world.”