An announcement was made on January 27, 2009 by Xianggui Wang, president and founder of the Soundking Group Company Limited (www.soundking.com) of Ningbo, China, to confirm that it has acquired the assets, trademark and intellectual property of Cadac Electronics plc (www.cadac-sound.com) with immediate effect. Under the ownership of Soundking Group, all 25 Cadac employees are being retained, with R&D and production continuing to be based in the UK. www.soundking.com

The purchase forms a key part of Soundking Group's ongoing strategic investment plan, as Wang explains: "I am personally delighted that I have been able to bring the world-famous Cadac brand and its outstanding products into the Soundking Group. I am also extremely happy that we have been able to retain all Cadac employees and to protect their jobs in this time of economic uncertainty. The Cadac R&D team will form the European core of Soundking Group's global R&D effort, enabling us to draw on Cadac's high level of expertise in analogue and digital audio and translate this into new products across the group."

Bob Thomas has been appointed as general manager of the new operating company, Cadac Holdings Limited, commenting: "The last few months have been a difficult time for all of us - for our employees, our customers and our suppliers. Now that we have got through this period, the future looks extremely bright, and we will be working quickly to re-establish Cadac in its core markets. Soundking Group is investing $6m in Cadac and in new product development, highlighting its commitment and belief in the market opportunity presented by our top quality global brand. For Cadac, the great news is that now we have the Soundking Group's financial backing, we will be able to accelerate that programme and in particular, put the S-Digital console back on schedule. Our digital R&D team is 100% focused on starting production in the summer of 2009; it's a great start to the year! On a personal note, I am delighted that we have been able to retain all our staff and that manufacturing of Cadac consoles will remain in the UK—an appropriate factor in this, Cadac's 40th year. With the Soundking Group's financial strength, new access to the fast-growing pro-audio market in China and the support of our existing customers and distributors, we are looking forward to a period of major sales growth."

Cadac reports a strong forward order book, including analogue desks destined for Russia, Germany, Korea and China within the next few weeks. The company is also focusing on staging a strong presence at this year's Prolight + Sound show in Frankfurt, taking place in early April.

The Soundking Group Company Limited has been established for more than 20 years, and is headquarterd in Ningbo, close to Shanghai. One of China's leading audio manufacturers, Soundking Group has an extensive range of innovative, market-leading products and was a major supplier for the Beijing Olympic Games in 2008.