Royer Labs Acquires Undertone Audio in Pro Audio Power Move

BURBANK, CA – April 20, 2026 – In a significant move that signals a new wave of consolidation within the professional audio industry, ribbon microphone manufacturer Royer Labs today announced its acquisition of Undertone Audio. The deal brings two of the most respected brands in modern recording under a single corporate umbrella, uniting Royer's iconic microphones with Undertone's high-end analog outboard gear, including its acclaimed UnFairchild compressor.

The acquisition is the second major transaction in as many months for the newly formed parent company, Sounds Great Holdings LLC, which acquired Royer Labs itself in March 2026. This rapid succession of deals points to an aggressive strategy to build a new powerhouse in the high-end audio equipment market, a sector currently experiencing robust growth driven by a resurgent live events industry and the booming creator economy.

Undertone Audio, founded by esteemed record producer Eric Valentine and engineer Larry Jasper, will relocate from its previous headquarters to operate from Royer Labs' facilities in Burbank, California. According to the announcement, Royer Labs plans to leverage its established global presence to expand Undertone's international reach and accelerate new product development.

A New Audio Conglomerate Emerges

The formation of Sounds Great Holdings and its swift acquisitions of both Royer and Undertone represent a deliberate strategy to consolidate strength in a specialized but expanding market. The professional audio equipment sector, valued at over $16 billion in 2024, is projected to climb past $25 billion by 2032. This growth is fueled by increasing demand for high-quality audio solutions in everything from massive concert venues to the millions of home studios powering the creator economy.

Sounds Great Holdings, led by a team that includes Royer Labs CEO Joe Covey, appears poised to capitalize on these trends. By acquiring category-leading brands with sterling reputations, the holding company is assembling a comprehensive portfolio that can serve a wide spectrum of the audio market. Royer Labs dominates a significant niche within the microphone segment—a market vertical valued at over $6 billion—while Undertone Audio is a key player in the premium studio and recording equipment space, a market forecasted to reach over $11 billion by 2033.

"Undertone has a reputation for producing exceptional recording equipment," said Joe Covey, CEO of Royer Labs, in a statement. "Eric and his team bring a combination of technical excellence, musicality, and craftsmanship. We're excited to build on Undertone's legacy in meaningful ways." This statement suggests a strategy focused not on absorption, but on amplification—using the resources of a larger entity to grow the acquired brand's potential.

Blending Analog Warmth with Ribbon Precision

The technical and creative synergy between the two companies is immediately apparent to industry observers. Royer Labs has been a leader in the modern resurgence of ribbon microphones, prized by engineers for their warm, natural, and detailed sound capture. Undertone Audio, meanwhile, has built its reputation on reimagining classic analog circuits, creating high-end Class-A gear that combines vintage tone with modern flexibility and precision. The pairing of world-class microphones with elite-level preamplifiers, equalizers, and compressors under one roof creates tantalizing possibilities.

The physical consolidation of Undertone's operations at Royer's Burbank headquarters suggests a future of close collaboration. Engineers and producers can anticipate potential innovations that leverage the combined expertise of both teams. This could manifest as finely tuned product bundles, integrated recording channels that pair a specific Royer mic with a perfectly matched Undertone preamp, or entirely new devices that incorporate design philosophies from both brands.

The acquisition promises to solve a key challenge for boutique brands like Undertone: scale. With the backing of Royer's established manufacturing and global distribution network, Undertone's sought-after products may soon become more readily available to a worldwide audience of audio professionals who were previously limited by smaller production runs and regional distribution.

The Founders' Vision and the Future of the UnFairchild

For the loyal user base of Undertone Audio, a key point of interest is the future of the brand's unique sonic identity, which has been carefully cultivated by its founders. The press release offered reassurance on this front, confirming that both Eric Valentine and Larry Jasper will remain actively involved with the company they built.

Valentine, whose production credits include artists like Queens of the Stone Age, Good Charlotte, and Slash, has always infused his gear design with a producer's sensibility for what works in a real-world studio session. The UnFairchild compressor, a modern and more versatile take on the legendary Fairchild 670, is a testament to this philosophy. Its success stems from delivering a coveted classic sound with reliability and features that modern workflows demand.

"I could not be more excited about this next chapter for Undertone Audio," Valentine stated. "Royer Lab's ownership of Undertone introduces a new era of support for future product development and presence in the pro audio market. The most exciting part is that Larry and I will continue to be involved to help maintain the high standard of sonic performance we've always strived for, and users have come to expect from UTA."

This continued involvement is critical. It signals to the market that the acquisition is a partnership aimed at growth rather than a simple corporate buyout. The founders' ongoing role as brand guardians and technical visionaries ensures that the DNA of Undertone Audio will guide its future evolution. With new resources for R&D and a broader international platform, the stage is set for this celebrated brand to not only preserve its legacy but also expand upon it in ways that were previously out of reach.