7digital
Songtradr has completed its acquisition of U.K. digital music company 7digital, the company announced on Thursday (March 30).
When the deal was first announced on Feb. 8 prior to being finalized, 7digital said it planned to accept a bid worth 19.4 million pounds ($23.4 million), with its shareholders set to receive 0.695 pence ($0.84) per share in cash, a 114% premium over the prior day’s closing price.
Songtradr is a music licensing marketplace and distribution platform that matches rights holders with brands via a searchable database. 7digital offers a range of digital music services for businesses, including licensing, tracking, reporting and paying rights holders. It has integrated with over 300,000 labels and publishers and boasts a catalog of over 80 million tracks.
In a release, Songtradr states that the acquisition “solidifies” it “as a key leader in the business-to-business music industry, establishing the company as the only one-stop music solution for digital platforms and brands worldwide.” Among other benefits, Songtradr says the acquisition will expand its ability “to power user experiences” on digital platforms including social media, lifestyle apps and video games while “extending its reach into new markets” — all thanks to 7digital’s “highly scalable” music delivery platform and “comprehensive” music catalog. 7digital’s list of clients includes global brands like Pinterest, Barry’s and Triller.
In a statement, Songtradr CEO Paul Wiltshire said the 7digital acquisition will help it achieve its goal “to remove the friction and help deliver scalable solutions for the music industry while simplifying music use for enterprise brands and digital platforms.”
Added 7digital CEO Paul Langworthy, “Together, we will have an unparalleled combination of catalog, technology, and capabilities, allowing us to better serve our current clients and offer new enterprise clients an exceptional range of data, services, and opportunities.”
Since the company’s launch in 2014, Santa Monica, Calif.-based Songtradr has raised over $100 million to build a company focused on solving many of the inefficiencies in music licensing. It acquired AI metadata and music search company Musicube in 2022, music licensing agency Massive Music in 2021 and licensing agency Big Synch Music in 2019. In 2021, Songtradr established a global creative division headed up by industry veteran Amanda Schupf. The company currently has teams in 16 countries.
As announced last month, Langworthy and the rest of 7digital’s senior leadership team will join Songtradr, though interim chairman Mark Foster, CFO Michael Juskiewicz and all nonexecutive directors will step down. Songtradr will also repay 7digital’s £2 million ($2.14 million) revolving credit facility as well as two £500,000 ($536,000) loans. The company will continue operating 7digital’s London office for now.
The acquisition by Songtradr closes out an unstable period for 7digital, which in July 2019 faced the possibility of entering administration — or the U.K. equivalent of Chapter 11 bankruptcy — unless it managed to raise £4.5 million ($5.5 million) in additional funds by the end of that month.
U.K. digital music company 7digital plans to accept an acquisition bid by Songtradr for 19.4 million pounds ($23.4 million), 7digital announced Wednesday (Feb. 8).
7digital shareholders will receive 0.695 pence ($0.84) per share in cash, a 114% premium over the prior day’s closing price.
7digital directors, who collectively hold 43.7% of outstanding shares, intend to recommend that shareholders vote in favor of the acquisition. Songtradr says it has also received irrevocable undertakings to vote in favor of the deal from institutional and other shareholders representing 24.8% of outstanding shares.
Since its founding in 2014, Santa Monica, Calif.-based Songtradr has raised over $100 million to build a company intent on solving many of the inefficiencies in music licensing. It acquired AI metadata and music search company Musicube in 2022, music licensing agency Massive Music in 2021 and licensing agency Big Synch Music in 2019. In addition, Songtradr established a global creative division, led by industry vet Amanda Schupf, in 2021.
Songtradr’s announcement highlighted a number of strategic benefits it will receive from the proposed transaction. For starters, 7digital would give Songtradr a platform and music catalog that “will enhance relationships with existing customers and accelerate new customer acquisition” and put the company “in an advantageous position to provide unmatched combined solutions” in the video game space for both licensors and music rights holders.
Also, 7digital, which launched in 2004, would give Songtradr a technology solution that “delivers both music and audio rights at scale, metadata enhancement, digital rights management, content tracking and royalty spending.” The acquisition would allow Songtradr to quicken its growth strategy and “simplify global music licensing,” the announcement added.
Following the acquisition, current 7digital CEO Paul Langworthy will join Songtradr along with the rest of the senior leadership team, though interim chairman Mark Foster, CFO Michael Juskiewicz and all non-executive directors will step down. Songtradr will additionally repay 7digital’s £2 million revolving credit facility as well as two £500,000 loans. It will continue to operate 7digital’s London office for the time being.
The acquisition marks the close of a turbulent few years for 7digital, which in July 2019 faced the possibility of going into administration — or the U.K. equivalent of Chapter 11 bankruptcy — unless it managed to raise £4.5 million ($5.5 million) in additional funds by the end of that month.
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