After outlining plans in November 2013 to create a separate stock market listing for its audio social network business Audioboo, UBC Media Group has reversed its remaining assets into a private-owned company.
The listing of Audioboo is now effective via the re-admission to trading of Audioboom Group. UBC holds 18.7 per cent of its share capital and raised £3.5 million to fund the business.
UBC’s acquisition of 7digital will create a reported £30 million business, with a new stock market listing pencilled in for early June. Under the terms of the transaction, the current shareholders of 7digital will control 75 per cent of the new company.
London-based 7digital has previously secured in excess of $20 million worth of venture capital funding from investors including Balderton Capital and Sutton Place Managers.
Simon Cole, CEO of UBC, comments, ‘This transaction will create a world-leading digital music and radio platform that is ideally positioned to exploit the convergence of radio and digital music services.
‘As we have been putting this transaction together, our joint management teams have already started wining business together and I am confident that the combination our combined global networks in technology and media will create an opportunity on the London market for investors to benefit from the growth of this dynamic sector.’
Cole adds that the new business is ‘well-placed’ to push forward with a consolidation of a fragmented B2B digital music industry.
UBC says its new approach will create a ‘balanced business’ around its interactive assets, including its product portfolio, broadcast software services and Audioboo offering.
It will now have experience in digital music and radio, new products and services including streaming, downloads and personalised radio as well as a scalable platform. The business has customers ranging from Samsung to the BBC.
Ben Drury, CEO of 7digital, adds, ‘Digital music has come a long way since the invention of MP3 in the nineties but it is only now that the majority of consumers are beginning to embrace music streaming and download services.
‘The 7digital open platform simplifies access to the world’s music and the combination with UBC will help further enhance the platform to include radio-style capability and services to help unlock the mass market for our customers and partners.’