Utopia divests again, as Absolute Label Services gets reacquired by original leadership team

Between September 2021 and February 2022, the Swiss-based music company Utopia made seven acquisitions.

Among the companies it has purchased in this acquisition are a music publisher and publishing management company based in Liverpool. Music group Sentricmusic industry directory based in the United States ROSTR, And Absolute label serviceUK-based distribution and service provider for independent artists and record labels.

In February, we learned that Utopia has decide to sell ROSTR returns to founders Mark Williamson and Adam Watson.

In March, Utopia sold to the Paris headquarters Trust In a Believe transaction, the value of Sentric is 47 million euros ($51 million).

Now, Utopia has divested again, with the original leadership of Absolute Label Services regaining ownership of the company, just 18 months after their business was acquired by Utopia Music.

Utopia acquired Absolute in February 2022. The company says it maintained its original, long-standing team, infrastructure and customer base during Utopia’s ownership.

The original shareholders of Absolute, Henry Semmence, Simon Wills (the company’s founder), Debs Cutting and Mark Dowling have now acquired 100% of the company’s shares from Utopia.

Absolute Label Services is a UK-based distribution and service provider for independent artists and record labels. Founded in 1998, Absolute’s current and recent client base ranges from burgeoning talents like Jake Isaac, edbl and Au-Ra to established names including Deep Purple, Beverly Knight and McFly.

The services offered by Absolute to customers include both digital and physical distribution, in addition to marketing, direct-to-consumer operations, administration and promotion via streaming and radio.

Absolute says it has “recently seen significant growth”, with revenue up 25% year-on-year across its entire business – which includes label services and neighborhood rights activities.

The company’s projects lined up for the rest of the year and through 2024 include the likes of Kula Shaker, Busted, James McVey (The Vamps), Kaiser Chiefs, Delta Goodrem and Tokio Myers, and emerging talent. like Barney Artist, edbl, Eljé and Frankie Stew and Harvey Gunn.

“Our primary focus over the past 28 years has been on delivering success and growth to our artists and brands. We look forward to continuing our relationship with all of them, while providing the dedicated support, resources and innovative solutions they deserve.”

Henry Semmence, Simon Wills, Debs Cutting and Mark Dowling

In a statement released on Monday (July 17), Semmence, Wills, Cutting and Dowling said: “Absolute management team is delighted to announce our decision to go independent. The decision to revert to full ownership of the company and to maintain the company’s vision and direction is motivated by our unwavering commitment to continuing to provide exceptional label services.

“Our primary focus over the past 28 years has been on delivering success and growth to our artists and brands. We look forward to continuing our relationship with all of them, while providing the dedicated support, resources and innovative solutions they deserve.”

They added: “We are committed to exploring new partnerships, forging strategic partnerships, and harnessing innovative technologies to enhance our brand offerings to achieve success. greater public and commercial growth. Our dedication to investment and expansion remains uncompromising.

“Our incredible staff, brimming with talent and expertise, will remain core to our success and we will continue to ensure that they have the tools and knowledge to knowledge to deliver great results for our artists and brands.”

News of Absolute’s founders acquiring their company from Utopia marks the third time this year Utopia has liquidated a company it previously acquired within the past 18 months.

Meanwhile, Utopia is also said to be sued by US music technology company SourceAudio, with the latter accusing the former of reneging on the agreed acquisition agreement.

Elsewhere in Utopia, in November, the company lay off part of its global staff (which is said to have affected 20% of the company’s employees), and on January 31, the company’s founder, Mattias Hjelmstedt, announced a major restructuring that he says represents “an exciting next step in Utopia’s journey” and demonstrates that his company is “optimizing for the future”.

The restructuring saw Utopia’s longtime CEO, Markku Mäkeläinen, leave the companywhile Hjelmstedt assumes day-to-day running responsibilities.

At that time, Utopia was divided into two separate divisions: (i) ‘Music Service’ (including acquired businesses such as a trio of UK-based companies Music group Sentric, Absolute label serviceand Right , which it acquired in January 2022); and (ii) ‘Royalty Platform’underneath that is Utopia’s in-house technology platform.

Before Downtown chief executive officer Roberto Neri, who joins Utopia as its COO in 2021was confirmed as the new CEO of Utopia’s ‘Music Services’ division, but on April 3, just 62 days after that announcement, Neri confirmed he will be leaving Utopia to become the CEO of ‘s new global publishing division Trust.

After today’s news, two of the companies that formed the ‘Music Services’ division of Utopia, Absolute Label Services and Sentric, which are no longer owned by Utopia.

MBW hear rumors Back in March, Utopia was also considering a quick sale of two other UK-based acquisitions: Proper and Cinram Novum. (At the time, a spokesperson for Utopia strongly rejected the suggestion.)

May, Utopia Music entered into a “long-term” contract of more than £100 million ($125 million) with DP World, a multinational logistics company with headquarters in the United Arab Emirates, to supply Warehousing and logistics for physical music in the UK.

As part of the agreement, DP World will equip a new warehouse in Bicester, UK for Utopia’s distribution unit, Utopia Distribution Services (UDS).

Utopia says the inventory will be moved from UDS’s warehouse in Aylesbury, UK (which it says it’s “inherited” from UK warehousing, fulfillment and distribution company Cinram Novum, which company with assets of Utopia acquired in 2022.)

Last week, MBW listen in came and reported on an interview with Mattias Hjelmstedt, founder of Utopia on the Dealmakers podcast with Alejandro Cremades, where he gave some hints about what’s been going on with the company lately.

Other companies acquired by Utopia include, in October 2022, the Nashville-based financial services company, Financial Lyric and in September 2022, Utopia bought Quincy Jones is backed emotional data enrichment company Musimap.

Global Music Business