Songtradr acquired the UK-based 7digital in a bid worth approximately £19.4 million (or $23.4 million at the time), according to Digital Music News. Songtradr reported earlier this morning that the acquisition of 7digital is now complete, with all signatures, approvals, and other closing details finalized.
The transaction strengthens Songtradr’s position as a business-to-business music company focused on developing solutions for digital platforms and brands around the world. Songtradr declined to provide a price for its latest acquisition, despite regulatory documents reviewed earlier this year revealing the aforementioned purchase price.
The deal was also confirmed by 7digital, a long-time provider of music-related backend and licensing services for a variety of platforms.
The company has long been associated with powering music platforms in a variety of formats, including the now-defunct downloads and, more recently, streaming. 7digital now boasts that it powers music services for “leading apps in fitness, social, radio, gaming, and background music.”
As a result, Songtradr’s acquisition of 7digital broadens its user experience capabilities in social media, lifestyle apps, and video games, as well as expanding its reach into new markets.A significant piece of the puzzle comes from pre-licensed catalogs, which are difficult to obtain.
The constraints and complexities that exist for digital games, apps, and platforms as a result of long-term fragmented licensing are a huge pain point for both sides of the marketplace, said Songtradr CEO Paul Wiltshire. The mission of Songtradr is to remove friction and assist in the delivery of scalable solutions for the music industry, while also simplifying music use for enterprise brands and digital platforms.
7digital’s technologies accelerate our ability to provide comprehensive, safe, and powerful solutions to our clients. We are thrilled to have the talented 7digital team join our family, and we are very excited about what we will create together.
