B2B digital music and radio services company 7digital has finalized the acquisition of French digital streaming music provider Snowite SAS – a deal originally announced in January.
Snowite’s client list includes a number of major French retail chains, and the acquisition is expected to increase 7digital’s annual turnover by at least £1.2m.
7digital says the deal will improve its profitability and bring various levels of automation to its content management platform.
The Snowite brand will be incorporated into 7digital and all new activity will be under the 7digital brand.
Simon Cole, CEO of 7digital, commented: “We are delighted to welcome the Snowite team to the Group. With major French customers in the retail, mobile entertainment and media sectors and a strong sales pipeline in French-speaking markets, Snowite will accelerate 7digital’s international expansion while strengthening our relationships with French music labels and publishers.
“Snowite will accelerate 7digital’s international expansion while strengthening our relationships with french music labels and publishers.”
Simon Cole, 7Digital
“Snowite’s platform and technology should also benefit our development roadmap and allow the company to make cost savings in planned future platform investment. Our teams have already been working well together, winning business and speeding through our platform integration even whilst the deal was awaiting completion.
“We predicted consolidation in the digital B2B music services space and we are delighted to be leading such a strategic union of two like-minded and compatible companies.”
Laurent Bouquet Des Chaux, Founder of Snowite, commented: “We are proud to join the 7digital team – this is a real opportunity for Snowite to apply all its know-how to larger projects and move forward with greater ambition. Our teams are already working together on a development roadmap, which will strengthen the 7digital offering in significant ways.
“Our strategic role in the French-speaking market (including African territories) will benefit 7digital and its team. We now have the network and the talent needed to design the digital B2B music services that will develop the global digital streaming market. It is exciting to see two ambitious and dynamic companies come together to achieve this.”
Loss-making UK business 7digital is forecasting that it will be a profitable company by the end of 2016. Music Business Worldwide