7digital announces plan to acquire French digital streaming music provider Snowite
PRESS RELEASE
London, UK, January 6 2016 – 7digital, the global B2B digital music and radio services company, is pleased to announce that it plans to acquire leading French digital streaming music provider Snowite [SAS].
Formed in 2006, Snowite provides services that are the same as those provided by 7digital and operates a similar technology platform from its base in Lille. It operates principally in continental Europe and Africa, with customers including French retailers Fnac and E.Leclerc, as well as mobile entertainment publisher Cellfish and Vivendi, owner of Universal Music. Snowite’s turnover in 2015 is expected to be €1.5m (£1.1m).
7digital and Snowite have signed Heads of Terms, an agreement that binds the parties to a period of exclusivity and to completion of the transaction subject to a decision by the French Commercial Court. Snowite is currently in “Procédure de Sauvegarde” under French insolvency law – a procedure similar to “Chapter 11” proceedings in the United States.
The acquisition of Snowite is expected to accelerate 7digital’s profitability, add several large customers to its portfolio, and deepen the company’s relationships with French labels and publishers. Snowite’s technology will also contribute to the strength of 7digital’s industry leading, reliable content management platform by improving various levels of automation in the ingestion process.
The formal completion of the acquisition is expected on or around 30th March 2016. The reason for the announcement today is that the court proceedings and 7digital’s part in them will imminently be public.
Simon Cole, CEO of 7digital, commented:
“We have always maintained that – as the market for streaming music and radio services matures – there will be opportunities to consolidate companies (such as Snowite) who operate within individual regions and do not have global scale. We were quite determined to be in a position to drive the consolidation. It is thanks to our global footprint, diverse roster of clients and hardworking team that we were able to start this process so recently after our merger and IPO.”
Laurent Bouquet des Chaux, CEO of Snowite, commented:
“This is a huge opportunity for Snowite and all its know-how and customers. We will continue to move the market, but with greater ambition. 7digital is an energetic and entrepreneurial group that will bring us the muscle, the network and the talent needed to develop the digital streaming world market even faster. Snowite will enrich the size and the digital expertise and data from 7digital group. Our cultures are very close, our know-how unusually complementary, our goals are the same.”
- For further reading please check the full financial statement
- This announcement is also available in French