Cambridge Sound, makers of the upcoming Sleep Infuser, has signed a deal with Barkby Life Sciences to sell their intellectual property. The Sleep Infuser uses audio technology to reset a user's sleep cycle. Barkby will own 75.1% of the acquiring entity, with the remaining percentage held by the two founders, who will remain active in the business. Commercial production of the device is expected to begin in the second quarter of 2020, with delivery in the third quarter of 2020.
The deal included £0.75m (approximately $970,000) initial cash consideration and a conditional deferred consideration of up to £5.25m (approximately $6.79M). Barkby will invest £1.5m of capital into the acquiring entity, and has the option to acquire the remaining 24.9% for £5m (approximately $6.47M) before the end of 2021.
The company has a single US patent in the Devices - Sound subcategory of the Consumer Sleep Technology Sector. The company has also invested in foreign protection, with issued patents in China, Great Britain, and Japan. Cambridge Sound faces competition in the Devices - Sound category from traditional companies in the audio space, such as Bose and Samsung, as well as more specialized sleep companies, including Kokoon.
