MONTREAL – Stingray Digital Group is buying Australian digital music services provider Digital Music Distribution Pty. Ltd. (DMD).
DMD provides digital music services to the public, broadcasters, media suppliers and brand partners through linear, subscription and brand promotion services. It currently operates 29 audio television channels for Foxtel, Australia’s largest pay-TV provider.
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.
The transaction was facilitated by Singapore-based Multi Channels Asia with which Stingray recently entered into a strategic partnership, reads the news release. Following the completion of the transaction, DMD's audio television channels will be integrated under the Stingray brand.
"Stingray has a track record of acquiring established, dynamic and creative companies – Digital Music Distribution is no exception," said Stingray president, CEO, and co-founder Eric Boyko, in Monday’s release. "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."
