Australian later listed Vinyl Group has secured blockchain music startup Serenade in a shares deal of up to $2.3 million. This acquisition is a big deal for Vinyl Group as it grows its portfolio and expands further into the music technology industry.
Acquisition Deal
The structured acquisition deal was signed on September 30, 2024, and comprises an initial scrip consideration of $800000 and a contingent scrip consideration of $1.5 million depending on the Profit and Loss statement. This scrip acquisition of London-based Serenade is on a twelve-month deal basis while the acquisition was effective immediately. The earn-out is dependent on the two companies generating at least $4 million in revenues and $500,000 Earnings Before Interest, Taxes(EBIT) for the subsequent year.
Journey and Innovative Approach of Serenade
Serenade was founded online by Max Shand in mid-2020 in Sydney and initially, it also served as a music celebrity message board for fans. The company made this transition in 2021 to concentrate on environmentally sustainable NFT (Non-Fungible Tokens) launching collections for various musicians such as Young M.A., Ladyhawke, and Super Furry Animals. Serenade has partnered with Brit Awards to provide the event’s first NFT collection.
Serenade’s digital marketplace has provided its services to over two hundred artists from around the world, some of which are Liam and Noel Gallagher, Muse, Sum 41, Twenty One Pilots, and Thirty Seconds to Mars. It has over 100 label partnerships with WMG, Beggars Group, Concord Music, Glassnote Music, FUGA, and PIAS.
In January 2024, Serenade released Near Field Communication (NFC) collectibles, it sold 12,000 units before half of 2024. This innovative approach has placed Serenade at the front lines of innovation within a rapidly growing sector that blends the collecting of traditional music with newer digital possibilities.
Vinyl Group’s acquisition of Serenade
The transaction between Vinyl Group and Serenade cannot be valued on business standards only, it is a vision and values unification. The founder and CEO of Serenade, Max Shand, will become part of Vinyl full-time and drive Serenade to its level of performance necessary for Vinyl’s development as well as contribute to Vinyl Group’s growth. Max Shand will play a significant part in diversifying Vinyl’s products into merchandise and digital assets and entering new markets.
Strategic and Market Impact
Serenade acquired by Vinyl Group is quite strategic in advancing the progress of the music technology industry. This is good for Vinyl Group as Serenade brings fresh ideas to the digital collectibles industry and has a solid market standing. The deal should contribute $2 million on annual turnovers for Vinyl and Serenade breakevening.
From the investors’ perspective, this merger marking can be described as the Vinyl Group’s attempt to leverage the growing trend of NAS and blockchain. The earn-out clause ensures that the plan involves both, and the targets on which the acquisition will be based shall aim at enhancing growth and profitability to suit the two entities’ best interests.
Conclusion
The purchase of Serenade by Vinyl Group is an effective example of how the music industry has developed and how technological advancement is important. Serenade’s blockchain-based digital collectibles platform can be integrated to provide Vinyl Group’s artists and their fans with a new and improved experience. This acquisition places Vinyl Group in a more strategic position in the market and provides opportunity for future growth and expansion in the digital music niche.
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