Songtradr to acquire 7digital, a UK publicly listed B2B music technology company, in $23.4m deal
Los Angeles-based B2B music licensing company songtradr agreed to buy back 7Digitala publicly listed music technology company based in the United Kingdom.
That’s according to a filing published in the UK on Wednesday (February 8), which states that the transaction is expected to close in the first quarter of 2023 and that the deal is a all-cash offer for all of 7digital’s issued share capital, worth approximately $1.5 million. 19.4 million pounds ($23.4 million).
7digital provides a portfolio of more than 80 million licensed tracks and provides API services to support music in fitness, social, radio, gaming, and soundtrack applications.
The company claims that “hundreds of companies” from streaming services to online fitness startups and global social platforms use so-called “music service platforms.” their backend support for licensing and using their music.
On its website, 7digital further explains that, using it, their tech companies can “connect their apps with licensed music from any label or publisher by using a fully integrated set of APIs”.
Elsewhere in Wednesday’s filing, Songtradr said that, through the deal, it will receive a “comprehensive music and technology solution for digital platforms and music copyright holders”.
It added that this delivers “both music audio and rights at scale, metadata enhancement, digital rights management, content tracking and royalty reporting”.
The filing also states that the agreement will result in “accelerate the execution of Songtradr’s growth strategy, eliminate inefficiencies and friction, and simplify global music licensing.”
Other acquisitions made by Songtradr in recent months include AI metadata and music search company, music in June of last year.
In addition to Musicube, Songtradr’s portfolio of music companies includes Massive Music (buy in June 2021), Big Sync Music (buy in February 2019) and Song Zu (buy in March 2021).
Other companies acquired by Songtradr include movie, TV and gaming music data platform adjustAnd tree biscuitprovide anti-DMCA music for Twitch and YouTube live broadcaster.
In September 2020, Songtradr invest $1 million in Jaxsta music credit resources, squid’s exclusive partnership.
Founded in 2014, the Los-Angeles-based music rights company has now raised more than 100 million USD to date and is, according to Wednesday’s filing, “backed by a number of institutional investors, family offices and high net worth shareholders.”
Songtradr has a team of more than 350 people and offices in 12 countries worldwide.
The company raised US$50 million in an oversubscribed Series D funding round in June 2021.
songtradrits previous funding round followed it Series C round worth 30 million USD in August 2021, at that time, the company’s valuation was $165 million.
Before that, Songtradr raised $4 million in Series A funding round in 2018 and $12 million in a Series B funding round in 2019.
“Songtradr’s business ambitions align with ours and there is a strong strategic alignment on how best to drive growth for the Combined Group, as well as how best to serve the needs of the Group. The B2B market is growing.
Paul Langworthy, 7 digital
Commenting on this Offer, Paul Langworthy, CEO of 7digital, said: “We are pleased to propose this Offer made by Songtradr as it benefits both the Company’s operations and its shareholders. ours.
“Songtradr’s business ambitions align with ours and there is a strong strategic alignment on how best to drive growth for the Combined Group, as well as how best to serve the needs of the Group. The B2B market is growing.
“The offer recognizes the fundamental value of the Company, offering all 7digital Shareholders the opportunity to withdraw certain cash at an attractive premium against the prevailing market share price.
“We firmly believe that as part of the Hybrid Group, 7digital will have access to the capital, support, and scaling needed to reach its full potential.”
“After a long time following the evolution of 7digital, we are delighted to have reached an agreement to merge our businesses, expanding our position in the technology and audio licensing ecosystem. B2B music.”
Paul Wiltshire, Songtradr
Commenting on the Offer, Paul Wiltshire, CEO of Songtradr, said: “Having closely followed the development of 7digital for a long time, we are delighted to have reached an agreement to merge the businesses. expanding our position in the B2B music licensing and technology ecosystem.
“We are excited about what our collective team will be able to achieve in providing enhanced service to our customers and helping shape the future of music licensing.”Global Music Business
