Audinate’s $28M Iris Deal Risks Hinged on Early Market Adoption

Strategic Expansion into Remote AV Control

Audinate Group Limited, the Australian technology company behind the widely adopted Dante audio networking platform, has announced its acquisition of Iris, a US-based software-as-a-service (SaaS) platform focused on remote video production and AV device control. The transaction, valued at an upfront US$20 million with an additional contingent consideration of up to US$8 million, marks a significant step in Audinate’s strategy to broaden its footprint beyond audio into video and control segments.

Audinate’s CEO, Aidan Williams, highlighted the synergy between Iris and the Dante ecosystem, emphasizing how Iris’s cloud-based, control-first platform complements Dante’s existing offerings. Iris enables AV professionals to remotely manage and monitor cameras and other devices in real-time through a browser interface, supporting advanced features such as AI-driven auto tracking and cloud recording. This capability aligns well with Dante’s customer base across corporate, entertainment, government, houses of worship, and education sectors.

Early Market Launch with Growth Potential

The Iris platform is currently in the early stages of market launch, having secured commercial agreements with 14 leading PTZ camera manufacturers. A white-label version was launched in April 2025, with a public launch planned for September 2025. Iris operates on a recurring subscription model, reflecting a SaaS revenue approach that Audinate plans to invest in heavily to accelerate market development and scale.

While Iris targets lower-end production use cases involving multiple cameras, its potential extends beyond cameras to other AV devices such as encoders, decoders, and mixers. This broad applicability positions Iris as a versatile tool for AV professionals managing complex device fleets remotely, particularly in verticals like sports, education, and corporate events.

Financial Structure and Outlook

The acquisition is funded through a combination of existing cash reserves and the issuance of new Audinate shares. Following completion, expected in July 2025, Audinate will maintain a strong balance sheet with a net cash position of approximately A$78 million. The contingent earn-out payments, split evenly between cash and equity, are tied to revenue and service performance milestones over the next three years.

Audinate acknowledges that Iris is at an early stage and will require further investment to support go-to-market activities and scaling efforts. The company anticipates that Iris will begin contributing materially to free cash flow within three to four years, contingent on successful market adoption and execution.

Integration and Leadership

Importantly, Iris’s founder and CEO, Noah Johnson, along with his team, will join Audinate, bringing valuable expertise in developing intelligent, user-friendly AV tools. This leadership continuity is expected to facilitate a smooth integration and accelerate the realization of strategic benefits.

Overall, the acquisition of Iris represents a calculated expansion for Audinate, reinforcing its position in the evolving AV landscape by combining audio networking with advanced video and device control capabilities.