Yamaha Corporation and Line 6 Inc. in Calabasas, Calif., announce a definitive agreement for Yamaha to acquire Line 6. Under the terms of the agreement, Yamaha will operate Line 6 as a wholly owned subsidiary to fully realize the compelling opportunities for the two brands, with Line 6’s operations continuing as before and its management team remaining in place.
The acquisition expands Yamaha’s portfolio of guitar modeling processing products and pro audio equipment, and offers new and exciting opportunities for accelerated growth for both companies. Line 6 developed and introduced the digital modeling guitar amplifier in 1996. Its product offerings include POD multi-effects processors, digital effects, guitar amplifiers, modeling guitars, a range of professional instrument and microphone digital wireless systems, digital live sound mixers, speakers, andiOS interfaces.
Based on the resolutions adopted by the Line 6 board of directors on December 19 and the Yamaha board of directors on December 20, a definitive agreement has been executed regarding the acquisition of all of the capital stock of Line 6. Yamaha will acquire all of the capital stock of Line 6 owned by the founders, venture funds and employees. The transaction is expected to be completed during January 2014 after receipt of customary regulatory approvals.
Wells Fargo Securities, LLC served as financial advisor to Line 6, Inc. and Kirkland & Ellis LLP served as legal advisor to Line 6, Inc.
“I am very happy that Line 6, which has been creating innovative products and creating new market opportunities consistently over its history, will become a member of the Yamaha group,” says Takuya Nakata, President of Yamaha Corporation. “We look forward to accelerating our growth strategy by pursuing the beneficial effects from both companies and by utilizing Line 6’s core brand power centered on guitarists that is so highly regarded worldwide as well as its unique technology, planning and development capabilities.”
“For over 30 years of developing products, and even further back to my earliest memories as a developing musician, Yamaha has been the brand for which I have always had the most respect,” says Line 6 co-founder and Chief Strategy Officer Marcus Ryle. “Yamaha has consistently set the standard in our industry for quality and innovation, and I am very proud for Line 6 to now be a part of this incredible legacy.”
“Yamaha’s acquisition of Line 6 will help accelerate the realization of our vision to drive innovation for musicians across the globe,” says Line 6 CEO and President Paul Foeckler. “We’re proud that Yamaha recognizes the innovation and value in our people, IP and processes and we’re excited about the opportunities ahead to expand our reach.”
Visit Line 6 at line6.com and Yamaha at usa.yamaha.com.
