Australian music technology company, Vinyl Group, has agreed to acquire a London-based Web3 start-up specializing in digital collectables, Serenade.
This deal will allow ASX-listed Vinyl Group to take control of Serenade’s assets, including 100% of the shares in its UK subsidiary. The acquisition aims to increase Vinyl Group’s presence in the digital collectables space.
The acquisition terms include an upfront payment of AUS $800,000, (US$554,700) with an additional AUS$ 1.5 million (US$1 million) in shares to be paid to Serenade’s shareholders. This additional payment is contingent on the newly combined entity achieving a revenue target of AUS$4 million (US$2.77 million) and earnings before interest and taxes (EBIT) of AUS$500,000 (US$346,700) within the 12 months following the completion of the deal.
The web3 start-up has gained recognition for its digital marketplace, which has attracted major global artists such as Liam and Noel Gallagher, Muse, Sum 41, and Thirty Seconds to Mars.
Their NFC-enabled Smart Formats, launched in January 2024, have seen growth, with sales increasing 56% month-over-month (MoM) and over 12,000 units sold in the first half of this year.
Serenade also holds partnerships with over 100 record labels, including industry heavyweights like Warner Music Group, Beggars Group, and PIAS. These partnerships have helped firm up Serenade’s position as a leader in the Web3 space.
I’m thrilled to reveal that @VNLASX has purchased Web3 platform @joinserenade, a play that sees us double down on tech. Serenade CEO @max_shand will also join Vinyl Group.
Serenade’s digital marketplace has served 200+ global artists including Liam and Noel Gallagher, Muse, Sum…— Josh Simons (@josh_simons_) September 30, 2024
Serenade’s Marketplace Lists Noel Gallagher’s ‘Digital Pressings’
Serenade describes itself as a music company that creates collectable physical and digital products, packaging high-resolution music together with bonus audio, image and video content.
The firm has listed Noel Gallagher “Digital Pressings” – this is a digital album, EP and singles that come complete with high resolution music and audio, image and video bonus content that can be streamed on Serenade.
In addition to continuing its focus on music, Serenade is exploring opportunities to expand its services into other entertainment sectors, such as sports. The acquisition will see Serenade operate alongside Vinyl Group’s brand, Vinyl.com, with a focus on improving the profitability of the company’s fastest-growing division.
As part of the agreement, Serenade’s CEO, Max Shand, will remain with the company under a full-time employment contract with Vinyl Group.
“I’m thrilled to announce the acquisition of Serenade by Vinyl Group, Australia’s only ASX-listed music company,” said Shand in a statement.
“From our very first conversation, it was clear that Josh, Jorge, and the Board shared our vision for supporting artists and audiences through outstanding music products, and so I’m excited to see how this partnership accelerates our impact,” adds Shand.
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