Canada's Stingray Digital Group Inc, a leading business-to-business multiplatform music provider, has reached an agreement to acquire Swiss-based iConcerts, a TV channel dedicated solely to live music currently distributed to more than 100 Pay-TV and OTT operators in 85 countries and available to an estimated 250 million households across Europe, Asia, Africa, and the Middle-East.
The transaction was supervised by the Singapore-based Multi Channel Asia (MCA), which recently agreed to a strategic partnership with Stingray. The acquisition is part of a strategy to expand the company's international presence and to distribute a complete portfolio of music products and services across all platforms. The takeover was concluded at a price of approximately C$12 million. Two-thirds of the sum is due immediately after the conclusion of the sales contract; Stingray will pay the remaining 34 percent after the purchase when a series of conditions has been fulfilled. After a successful completion of the transaction, DMD's audio-TV channels will be integrated in Stingray's brand.
With this transaction, Stingray firmly establishes a stronghold in the Asian market, including distribution deals with CCTV in China, KT in Korea and StarHub in Singapore. iConcerts also has an important presence in Europe with providers Swisscom and Orange, and in Russia with Tricolor. The deal also gives Stingray dominance in the live music concerts on TV category and is expected to add $5M in annual revenues for the Montreal-based firm.
"Following the acquisitions completed over the last two quarters, the agreement with iConcerts further demonstrates our intent to provide our clients with the greatest variety of digital music products and services on the market," said Eric Boyko, President, Co-founder and CEO of Stingray. "iConcerts' live music concert library perfectly complements Stingray's current offering (Stingray Concerts, Stingray Brava, and Stingray Djazz), allowing us to become the number one destination for exciting live performances on television."
iConcerts was launched on June 21, 2006, and was operated by Transmedia Communication SA. iConcerts' programming features the biggest stars of today and decades past and includes concerts, TV show, documentaries and interviews.
Other recent Stingray news includes the Nov 30th appointment of former CRTC Vice Chair Tom Pentefountas as Sr VP Sales, EMEA (Europe, the Middle East and Africa) and Asia, as well as a public offering on the TSE in June of this year. The stock closed at $6.35 yesterday, up from its initial public offering price of $6.25 per share.