LONDON (CelebrityAccess) — Digital music licensing service Songtradr Inc. announced plans to make an offer to acquire the British music tracking service 7digital Group for £19.40 million.
Focused on the B2B market, Songtradr provides music solutions for music rights holders as well as brands, agencies, digital platforms and content creators through a digital licensing marketplace.
The proposed all-cash deal will see Songtradr fully acquire 7digital Group at the rate of 0.695 pence/share, equating to £19.40 million.
“Having closely followed 7digital’s evolution for a long time, we are delighted to have reached an agreement to combine our businesses, expanding our position in the B2B music licensing and technology ecosystem. We are very excited with respect to what our collective team will be able to achieve in delivering an enhanced offering for our clients and to help shape the future of music licensing,” said Songtradr’s CEO Paul Wiltshire.
“We are pleased to recommend this offer to be made by Songtradr as it is beneficial to both the operations of the Company and our shareholders,” added Paul Langworthy, CEO of 7digital. “Songtradr’s ambition for the business matches our own and there is strong strategic alignment on how best to drive growth for the Combined Group, as well as how best to serve the needs of a growing B2B market.”
“The Offer recognizes the underlying value of the Company, providing all 7digital Shareholders with the opportunity of a certain cash exit at an attractive premium to the prevailing market share price. We firmly believe that as part of the Combined Group, 7digital will have access to the capital, support and scale it needs to achieve its full potential,” Langworthy added.