WiSA Technologies, Inc. (NASDAQ: WISA), a leading provider of immersive wireless sound technology, is poised to expand its portfolio with the acquisition of CompuSystems, Inc. (CSI), a premier provider of registration, data analytics, and lead management services for live events. This strategic move comes as WiSA anticipates closing its acquisition of Datavault’s assets and changing its name to Datavault Inc. by the end of 2024.
WiSA Technologies, formerly known as Summit Wireless Technologies, has been at the forefront of wireless audio innovation since its founding in 2010. The company specializes in developing wireless sound technology for intelligent devices and next-generation home entertainment systems, working with leading consumer electronics brands such as Harman International, LG, and Bang & Olufsen.
The acquisition is expected to significantly boost WiSA’s financial performance. CompuSystems’ management projects the company will contribute between $13 million and $15 million in revenue and $3 million to $4 million in EBITDA in 2025. This financial injection positions WiSA for strong growth, building on its recent performance where Q3 2024 revenue reached $1.2 million, up 52% from Q3 2023 and 240% from Q2 2024.
Brett Moyer, CEO of WiSA Technologies, emphasized the strategic nature of the acquisition, stating it will leverage CSI’s extensive experience in events management with Datavault’s ADIO® platform capabilities. This integration is expected to drive new revenue streams and expand gross margins, aligning with WiSA’s focus on innovative audio solutions.
The merger brings together CSI’s 48-year history in the global events industry with WiSA’s cutting-edge wireless audio technology. WiSA’s flagship product, WiSA E, is a software-based solution that works with standard Wi-Fi chips, designed for easy implementation and flexibility across various price points and business models.
Mark LoGiurato, CEO of CompuSystems, expressed enthusiasm about joining a public company, highlighting the opportunity to rapidly scale their M3 platform and enhance their offerings with advanced Web 3.0 data analytics.
While financial terms remain undisclosed, the transaction is expected to close around January 31, 2025, subject to customary conditions. As of September 30, 2024, WiSA reported $3.9 million in cash, positioning it for this strategic acquisition.
This move represents a significant step for WiSA Technologies as it seeks to strengthen its position in the immersive wireless sound technology market while expanding into the lucrative event management and data monetization sectors. The integration of CompuSystems’ expertise with WiSA’s existing technologies could create a powerful platform for future growth and innovation in the rapidly evolving digital event space.
