Update: Native Instruments (Once Again) in Preliminary Insolvency - What Happens Next? - gearnews.com

The situation at Native Instruments remains critically important to many musicians and producers, as the provisional insolvency affects one of the most influential companies in modern music production. As a result, Native Instruments continues to be a source of uncertainty, raising questions about the future of its tools and projects. Because the software has been an integral part of countless studios for years, every new development is being watched closely. Now Nick Williams, CEO of Native Instruments, has issued another statement on the current situation.

Native Instruments is currently in the middle of a major transition that could shape the future of its well known audio brands. The company continues to move forward with its restructuring process while also confirming an ongoing sale process. For many users, this situation may initially feel uncertain. At the same time, there are clear signs that Native Instruments has already attracted concrete interest from companies in the audio and technology sectors. The current insolvency phase is part of a planned process that aims to lead to a more stable structure in the long term.

The background of this situation is less about product quality or demand and more about financial decisions from the past. The challenges are closely linked to debt structures that originated from previous investor models. For users of NI hardware and software, this is an important distinction. Native Instruments continues to be a key player in the music software landscape. Products such as Komplete and Kontakt, as well as brands like iZotope and Plugin Alliance, still play an important role in many production workflows.

Here is the official update from Nick Williams, CEO of Native Instruments:

I want to share a direct update on the restructuring process underway here at Native Instruments. Business continues as usual across Native Instruments, iZotope, Plugin Alliance, and Brainworx. Our products, platforms, services, downloads, and customer service remain fully available.

The support we are receiving from our partners, artists, and community has been extraordinary. This loyalty isn’t something we take for granted, and it’s a reflection of what Native Instruments means to the people and businesses we work with every day.

At the end of January I said: “We are working diligently and responsibly to secure a healthy, financially sustainable future for Native Instruments.” This remains true – and our determination to achieve a sustainable future is strengthened and energised by your support.

We are currently in an active M&A process [Editor’s note: Mergers and acquisitions (M&A) describe the structured process of preparing, selling or acquiring, and integrating companies, usually across five to six phases.] that is progressing well, with strong interest from multiple parties with deep roots in audio and technology. We see a clear path to achieve our goal to provide continuity for creators, customers, and partners.

As part of the restructuring process, Native Instruments GmbH and a number of our German entities will shortly be moving through expected legal steps, including transitioning from “preliminary insolvency” into formal “insolvency” proceedings where applicable. These are expected steps in the process we are working through.

What gives me confidence in our future isn’t just the progress we’re making – it’s also the extraordinary passion and dedication of the entire team here at Native Instruments. We continue to deliver every day, building and shipping products, and looking after our customers.

We’ll continue to share significant updates as we have them.

That certainly sounds more reassuring than many initially expected. In practical terms, the key question for you is what this development actually means going forward. Right now, there are strong indications that existing products and platforms will continue to receive support. A potential acquisition by a company within the audio industry could even bring additional stability.

At the same time, it’s still unclear how future developments will affect updates, long-term support, or new product releases. For many producers, Native Instruments will therefore remain a core part of their setup, even if structural changes continue to unfold behind the scenes.

After the Insolvency Announcement: This is Apparently How Things will Continue at Native Instruments

[05 February 2026] One of the clearest assessments comes from Music Trades magazine and its editor, Brian T. Majeski. He describes Native Instruments as the latest example of a company that encountered difficulties after being acquired by the investor Francisco Partners. After several years under financial control, sales reportedly declined while losses in the hundreds of millions accumulated. At the same time, the obligation to repay substantial debts increased the economic pressure considerably. Ultimately, this combination led to the company filing for preliminary insolvency proceedings in Berlin.

Nevertheless, those in charge aim to keep Native Instruments operating. The company still has a strong product portfolio and a large user base. However, many users are reacting with caution. Although the company officially speaks of normal business operations, some customers are postponing planned purchases or upgrades. Their primary concerns center on long-term license security, support, and future development. For you as a user, this means trust and planning stability matter more right now than new features.

Why Many Users are Now Taking a Wait-and-see Approach

Strategic shifts in direction have also caused confusion in retrospect. For instance, the introduction of the umbrella brand Soundwide and the later return to the name Native Instruments appeared contradictory to many observers. At the same time, some products were discontinued while others reappeared years later. Such decisions make it difficult to maintain a clear line in product development. When users cannot recognize a platform’s direction, they quickly develop distance.

This is where the real challenge for Native Instruments now lies. Alongside financial stabilization, the company must rebuild lost trust. This cannot be achieved through announcements alone, but through reliable updates, transparent communication, and a clear product strategy. Since many of you work with these systems every day, stability matters more than grand visions. How consistently this path is followed will ultimately determine how strongly Native Instruments remains present in studios.

Update: The Official Statement from NI

[29 January 2026] The news of Native Instruments GmbH’s preliminary insolvency is causing quite a stir in the music technology scene. According to official documents from Berlin (see the article by Peter Kirn on cdm), proceedings are underway against the company. This puts the spotlight on a manufacturer that has been a mainstay in studios, on stages, and in production environments for years. This is a turning point for you because NI has long been part of the standard digital music production repertoire – and not just because of Kontakt, Traktor, and Maschine.

Nick Williams, the CEO of Native Instruments, just released an official statement stating that business and operations are continuing as usual:

I want to personally take a moment to address the recent news about Native Instruments.

Please rest assured that business continues as usual at Native Instruments, iZotope, Plugin Alliance and Brainworx. Our hardware and software products remain on sale and available for download and activation. Our passionate and dedicated teams are here and supporting customers as normal. In product and engineering, we are continuing to develop and launch new products and features. Our NKS Partnerships team continues to process Kontakt Player licences and NKS Partner submissions.

We are working diligently and responsibly to secure a healthy, financially sustainable future for Native Instruments. As you may have seen, Native Instruments GmbH has entered a restructuring process in Germany, as have 3 of our German non-operating holding companies. In legal terms, we have filed applications to open pre-insolvency proceedings for those companies.

We are focused on providing continuity for creators, customers, and partners. We’ll continue to share updates as we have them.

I’m a lifelong musician myself, and have been a passionate fan of Native Instruments for 25 years. Our mission to inspire and enable creators to express themselves through sound continues.

Update on the Situation Surrounding Native Instruments and Plugin Alliance

[28 January 2026] Plugin Alliance has now issued an important statement regarding the situation at Native Instruments. According to a statement published on the Plugin Alliance Audiophiles Facebook page, the Plugin Alliance companies are not currently involved in the ongoing insolvency proceedings. The locations in Langenfeld and the US are reportedly outside the scope of these proceedings. This means that this part of the group of companies will be considered separately from an organizational perspective.

The statement also says that Plugin Alliance is currently continuing to operate as normal. Product releases, support, installers, and all other processes will continue as usual. This means that users of the plugins and services can continue their usual daily work without any immediate restrictions for the time being. Those responsible have announced that they will share further information as new developments arise and have emphasized their commitment to partners and customers.

Native Instruments has been Declared Provisionally Insolvent

[27 January 2026] In recent years, the company has undergone several structural changes that have not always been clearly communicated to the outside world. First, the investment firm Francisco Partners came on board, then Soundwide was formed as a merger of Native Instruments, iZotope, Plugin Alliance, and Brainworx. Later, the company returned to focusing on the Native Instruments brand. These changes indicated that the company was undergoing a period of major restructuring.

Preliminary insolvency proceedings are now underway, and according to available information (see cdm), an insolvency administrator has been appointed. Such proceedings often aim to examine restructuring options or find new solutions for the future. This often involves restructuring, potential investors, or the sale of individual business units. It is not possible to assess whether or to what extent Native Instruments can be stabilized in this way at present, as no details on the company’s financial situation are publicly available.

In Transition?

In retrospect, many observers do not consider this development to be entirely surprising. In recent years, particularly since 2019, the company has faced repeated criticism for its often-incomprehensible product strategies and decisions. Massive X failed to meet expectations for a long time, Absynth 5 was discontinued, and the Sounds.com project was terminated. At the same time, the range of sample libraries grew, and some users felt genuine innovations were becoming rarer. These factors led to a loss of confidence among some in the community.

However, there have also been recent attempts to reconnect with users. New developments, such as the new version of Absynth 6 and updates to Maschine and MIDI controllers, suggest a change in direction. However, these efforts have not been enough to stabilize the situation. It creates the image of a company caught between strategic realignments and searching for its core identity.

Is This a Phase of Reorganization?

Should Native Instruments undergo major changes, the consequences would extend beyond the company itself. Many productions, setups, and working methods rely on instruments and effects from this environment. Changes would therefore affect not only the software, but also the people who work with it. What about iZotope and Plugin Alliance? Employees and partners, in particular, find themselves in a period of uncertainty. It remains to be seen how things will unfold, but the next steps in the process will be decisive for the future of Native Instruments.

We will update you here as soon as we learn more.

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