Less Ads, More Data, More Tools Register for FREE

Pin to quick picks7DIG.L Share News (7DIG)

  • There is currently no data for 7DIG

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

7digital To Acquire French Music Streaming Provider Snowite (ALLISS)

Wed, 06th Jan 2016 08:12

LONDON (Alliance News) - 7digital Group PLC said Wednesday it has signed heads of terms for its proposed acquisition of French digital music streaming provider Snowite SAS.

Under the proposed acquisition it will issue 7.3 million shares as a consideration. Shares in the company closed at 6.55 pence Tuesday, and 7digital said that based on its closing mid-market share price prior to announcing the acquisition, the transaction is valued at around GBP485,000.

This will represent an around 6.34% stake in the company's enlarged issued share capital.

Snowite is currently in "Procédure de Sauvegarde" under French insolvency law, and the acquisition will be subject to a decision by the French Commercial Court. Following the signing of heads of terms, 7digital has begun a process to agree a repayment schedule of Snowite's outstanding debt, expected to be EUR1.8 million.

7digital expects the acquisition to increase its turnover by at least GBP1.2 million on a yearly basis, and brings with it "major French retail clients",as well as a strong sales pipeline in French-speaking markets.

The acquisition will add to earnings after an integration period, and will produce overhead synergies of more than GBP500,000 per year from 2017, 7digital said.

"This transaction represents an example of the consolidation which we have always anticipated in the market for B2B supply of digital music and radio services globally; we have positioned 7digital to be ready for this. Assuming we achieve the Court debt repayment schedule that we anticipate, the acquisition of Snowite gives us important new recurring revenues, an accelerated move to profitability and creates shareholder value on advantageous terms," said 7digital Chief Executive Officer Simon Cole in a statement.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

Copyright 2016 Alliance News Limited. All Rights Reserved.

More News
8 Sep 2020 10:41

7digital inks licensing agreement with Apex Rides

(Sharecast News) - Digital music solutions group 7digital has entered the home fitness space with an out-of-the-box solution to support a music-based virtual fitness service from Apex Rides.

Read more
3 Sep 2020 19:33

IN BRIEF: 7digital Raises GBP6 Million Through Fundraising

IN BRIEF: 7digital Raises GBP6 Million Through Fundraising

Read more
3 Sep 2020 15:27

7digital announces fundraise of at least £5m

(Sharecast News) - Digital music company 7digital Group intends to raise at least £5m, it announced on Thursday, to support a number of commercial growth opportunities.

Read more
26 Aug 2020 13:38

IN BRIEF: 7digital And eMusic Team For Livestream Platform eMusicLive

IN BRIEF: 7digital And eMusic Team For Livestream Platform eMusicLive

Read more
26 Aug 2020 09:29

7Digital to launch live music streaming platform

(Sharecast News) - Digital music solutions group 7Digital has partnered with eMusic to launch a streaming platform for the live music industry to stage virtual concerts.

Read more
24 Aug 2020 11:03

UK WINNERS & LOSERS SUMMARY: BT Up On Report Of Takeover Defence Move

UK WINNERS & LOSERS SUMMARY: BT Up On Report Of Takeover Defence Move

Read more
24 Aug 2020 10:43

7digital Shares Up On Extended Contract With Streaming Service Jazzed

7digital Shares Up On Extended Contract With Streaming Service Jazzed

Read more
24 Aug 2020 09:42

7Digital signs support contract with Jazzed

(Sharecast News) - Digital music solutions provider 7Digital has signed a deal to support Jazzed with launching globally in new geographies.

Read more
20 Aug 2020 10:49

7digital Shares Rocket On New Contract Win From Global Tech Firm

7digital Shares Rocket On New Contract Win From Global Tech Firm

Read more
17 Aug 2020 18:28

IN BRIEF: 7digital Notes Sharp Share Jump After Trump Signs Up Triller

IN BRIEF: 7digital Notes Sharp Share Jump After Trump Signs Up Triller

Read more
12 Aug 2020 10:32

7digital And Triller Partner To Power Social Music Video App

7digital And Triller Partner To Power Social Music Video App

Read more
17 Jun 2020 13:42

IN BRIEF: 7digital Gets Contract Renewal With Universal Music France

IN BRIEF: 7digital Gets Contract Renewal With Universal Music France

Read more
15 Jun 2020 16:25

IN BRIEF: 7digital Delays Annual Results As Virus Delays Audit

IN BRIEF: 7digital Delays Annual Results As Virus Delays Audit

Read more
27 Apr 2020 13:51

UK TRADING UPDATE SUMMARY: Novacyt Called Upon To Ramp Up UK Testing

UK TRADING UPDATE SUMMARY: Novacyt Called Upon To Ramp Up UK Testing

Read more
27 Apr 2020 10:58

7digital 'well-positioned' to weather Covid-19

(Sharecast News) - Digital music solutions group 7digital said on Monday that it was "well-positioned" to handle the Covid-19 pandemic, despite noting that several new contracts and renewals expected to be signed in the second quarter would now be pushed out until later in the year.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.