Stingray Acquires Digital Music Distribution Pty Ltd
Stingray gains strategic foothold in Asia-Pacific.
Montreal – Stingray Digital Group Inc. (TSX: RAY. A; RAY B), a leading business-to-business multiplatform music provider, today announced that it entered into a definitive agreement to acquire Digital Music Distribution Pty. Ltd. (DMD), Australia’s most important digital music services provider. The transaction was facilitated by Singapore-based Multi Channels Asia (MCA) with which Stingray recently entered into a strategic partnership. This acquisition is expected to provide Stingray with a strategic foothold in the Asia-Pacific region.
This acquisition is aligned with Stingray’s strategy to expand its international presence and to offer a complete portfolio of music products and services across all platforms. The all-cash AUD $12 million transaction includes an amount equivalent to 66% payable to DMD upon the closing of the purchase and a 34% holdback to be released upon the completion of various post-sale requirements by Stingray.
“Stingray has a track record of acquiring established, dynamic and creative companies – Digital Music Distribution is no exception,” said Eric Boyko, President, Co-founder and CEO of Stingray. “Considering the untapped potential of digital television in Australia, the acquisition of DMD holds enormous potential. This transaction provides us an exciting opportunity to enter the Australian market with a comprehensive product line and to accelerate our growth in Asia-Pacific. We look forward to building long-lasting and mutually beneficial relationships with all clients currently served by DMD.”
DMD provides digital music services to the public, broadcasters and other media suppliers as well as brand partners. DMD offers linear, subscription and brand promotion services across a wide range of music catalogues from leading major and independent record labels. DMD currently operates 29 audio television channels for Foxtel, the country’s largest Pay-TV provider.
Following the completion of the transaction, DMD’s audio television channels will be integrated under the Stingray brand.