inMusic Brands, the US-based owner of Akai, Moog, Denon, Numark, Rane, and M-Audio, announced today that it will acquire Native Instruments. That puts NI tools like Traktor and Kontakt under the inMusic umbrella along with Plugin Alliance, iZotope, and Brainworx.
This is all of NI — despite some public statements by various brands about subsidiary corporate structures, NI, with its international entities and former acquisitions, is included as a whole. And it is “a definitive agreement.” Expect that, given the rigidity of German insolvency proceedings, we should see this as the conclusion of this part of NI’s story.
There are a few pieces here that are particularly significant:
Native Instruments software/hardware. NI’s core products in Komplete (and Kontakt) naturally complement inMusic’s controllers. And they’re differentiated enough from the MPC and inMusic’s existing software — especially as musicians remain fiercely loyal to particular tools. (In the end, MPC and Maschine die-hards are in no hurry to switch in either direction.)
Oh yeah, and you can probably expect to see NI instruments and effects (including Plugin Alliance and Brainworx) on the MPC standalone platform.
Traktor. This is the other big one. inMusic is huge, but the addition of Traktor gives it the potential to counter the market dominance of AlphaTheta (née Pioneer).
Reaktor. This may sound like a nerdy niche, but it’s the most essential part of NI’s DNA. It drives a lot of the sound content. It’s also unlike anything inMusic now owns. And it was largely neglected by NI in recent years. If inMusic is smart, they’ll invest in it again. (Don’t forget that techniques like granular synthesis are the basis of a lot of the tools we now use; Ableton founder Gerhard Behles even worked on Reaktor’s granular engine before going on to create Live. Everything from Live to the CDJ is made possible through the same techniques.)
iZotope. Speaking of IP, iZotope’s research pedigree is phenomenal. And even aside from the current implementation in these tools, this gives inMusic a huge leg up in research in machine learning and other fields.
…and legacy. The downside of all of this for any acquiring company is a ton of legacy code. inMusic has managed a lot of brands. It’ll be a test of their ability to deal with that legacy code, retaining the product relationships but coping with modernization and support (and deciding what to jettison).
By the way, if you want to be successful in retaining all these customers and navigating all that legacy code, you’d find a way to retain the employees, not just slash headcount.
I’m also curious which bids lost out.
Stating the obvious…
There’s not much to say to current employees; this year and last year have already seen significant layoffs, and another acquisition is likely to bring more. So until those details become available, I’m sure a lot of people will be holding their breath.
At least this can bring some encouraging news to the NI ecosystem, especially content producers for Kontakt and developers who rely on NKS controller integration and the income associated with sales and distribution. It means some relief for the instability and uncertainty recent years have brought, not just the insolvency revelation.
This also consolidates a huge swath of the MIDI controller market, as Akai Pro (including the popular MPK line), M-Audio, and NI all exist under one roof. (I wonder a little about whether the M-Audio line won’t just be retired, but maybe inMusic has a place for it.) And any time one brand consolidates market power, consumers have every right to be wary of price and innovation — with this acquisition and consolidation industry-wide.
I know not everyone is going to like this deal. But on the other hand, the industry has potentially dodged a bullet. Sequential, Novation, Moog — a lot of the most storied brands are now continuing largely because of acquisitions. It’s now up to inMusic to preserve not just the IP but the talent and creativity that produced these tools, and most importantly, the relationships and trust built with customers.
As inMusic notes in their press release, NI has “a direct relationship with over 25 million registered users.” So what happens next will be up to you, and whether inMusic can keep all 25 million of you happy.