Stingray Digital Group has signed an agreement to acquire Australian digital music service provider Digital Music Distribution Pty. Ltd (DMD).
The deal follows Stingray’s entering into a strategic partnership with Singapore-based Multi Channels Asia, which facilitated the DMD transaction. The AU $ 12 million all-cash acquisition includes 66% payable to DMD upon closing, and a 34% holdback which will be released once a number of after-sales requirements have been met by Stingray.
DMD provides digital music services to broadcasters, media providers, partner brands and the general public. It also offers linear, subscription and brand promotion services for a number of major and independent record label music catalogs. It currently operates 29 audio television channels for Foxtel in Australia. Once the transaction is completed, DMD’s audio TV channels will be offered under the Stingray brand.
The strategic partnership between Multi Channels Asia and Stingray was signed in November. As part of the agreement, Stingray will provide Multi Channels Asia with growth capital over a period of several years. Multi Channels Asia, in turn, will represent all of Stingray Digital Media’s productions, such as Stingray Music and Stingray Concerts, in the Asian market. Earlier in 2015, Stingray announced that it had raised approximately $ 140 million in its initial public offering.
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