7digital backs GBP19 million buyout by music licensing firm Songtradr

(Alliance News) - 7digital Group PLC on Wednesday agreed to a GBP19.4 million takeover from music licensing company Songtradr Inc.

Songtradr will pay 0.695 pence per 7digital share, more than double its closing price of 0.325p on Tuesday.

7digital shares more than doubled to 0.68p in London on Wednesday, giving it a market capitalisation of GBP18.1 million.

7digital directors consider the terms to be fair and reasonable.

Chief Executive Paul Langworthy said: "The offer recognises the underlying value of the company, providing all 7digital shareholders with the opportunity of a certain cash exit at an attractive premium.

"The offer recognises the underlying value of the company, providing all 7digital shareholders with the opportunity of a certain cash exit at an attractive premium to the prevailing market share price. We firmly believe that as part of the combined group, 7digital will have access to the capital, support and scale it needs to achieve its full potential."

By Jeremy Cutler, Alliance News reporter.

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