11:11 AM EDT, 08/05/2025 (MT Newswires) -- (Updates with National Bank commentary.)

Stingray Group (RAY-A.TO, RAY-B.TO) over the holiday weekend said it acquired the assets of The Singing Machine Company, a home karaoke business.

The acquisition includes The Singing Machine's associated intellectual property, customer, supplier contracts and inventory. No price was given.

"By combining their renowned hardware with our extensive karaoke library and global distribution network, we will enhance the at-home and in-car karaoke experience for millions of fans," said Stingray Chief Executive Eric Boyko. "We see tremendous potential in developing new microphone technologies, especially for the expanding in-car entertainment market, creating exciting new opportunities for growth."

National Bank of Canada maintained its outperform rating and $13.00 target price following the acquisition as it thinks revenues are in the range of $15 million-$20 million with an adjusted EBITDA margin of about 10%.

"We estimate that the purchase price was less than $1M, as RAY likely assumed related liabilities," said analyst Adam Shine. "There will be some seasonality involved with revenues which will be segmented as Equipment & Labour and get reported under the Broadcasting and Commercial Music segment."

The company's Class A shares were last seen down $0.13 to $10.75 on the Toronto Stock Exchange.

Price: 10.75, Change: -0.13, Percent Change: -1.19