GHS.L Regulatory News (GHS)

5 Feb 2008 07:01

Spark Ventures PLC05 February 2008 For Immediate Release 5 February 2008 SPARK Ventures plc SPARK increases Kobalt valuation LONDON, U.K. (5 February 2008) - SPARK Ventures plc (SPARK) is pleased toannounce that Kobalt Music Group Ltd (Kobalt), a leading independent musicpublisher and one of its largest portfolio companies, has signed an agreementwith Balderton Capital whereby Balderton will invest new equity in Kobalt. Thistransaction will result in a 60% uplift in the valuation of SPARK's investmentin Kobalt, increasing from £4.4m to £7.0m. The agreement will also see TimBunting, partner at Balderton Capital and an ex partner of Goldman Sachs, jointhe Board of Kobalt. Kobalt was established in 2001 to provide a modern, efficient and transparentmusic publishing model that would better service the needs of the songwritersand copyright holders by leveraging technology. SPARK originally provided significant seed investment to Kobalt in 2001. Sincethen, Kobalt has grown rapidly with revenues growing on average at over 100% perannum over the last three years. Its roster of writers has composed songs forartists such as Leona Lewis, Madonna, Natasha Bedingfield, Eminem, RobbieWilliams, Gwen Stefani, Pink and Avril Lavigne among others. During 2007, Kobaltwas both a top U.K. and U.S. independent publisher with a U.K. ranking at No. 5publishing market share (source: Music Week) and a ranking as No. 6 inpublishers market share for U.S. Airplay charts (source: Billboard Magazine). Tom Teichman, Chairman of SPARK and Kobalt said: "We are delighted to have aninvestor of Balderton's quality on board with Kobalt and would like to welcomeTim Bunting to Kobalt's Board. I am confident that this new relationship willadd significant value to Kobalt's winning formula." Willard Ahdritz, Founder and CEO of Kobalt added: "We're excited to work withTim Bunting and Balderton Capital. This new capital injection will bolster ourplans to further expand internationally, as well as help fund sizeable pipelineadvances and the roll out of new services for music rights holders." Tim Bunting, Partner at Balderton Capital, added: "We are proud to join theKobalt team as it further rewards and empowers the creative talent in the musicindustry. Kobalt is working with performers, copyright owners and songwriters todeliver to consumers and creators." The investment is subject to shareholder approval at the forthcoming Kobalt EGM. Close Brothers advised Kobalt on the transaction. Enquiries: SPARK Ventures plc Andrew Carruthers / Thomas Teichman 020 7851 7777 Buchanan Communications Isabel Podda 020 7466 5000 Collins Stewart Europe Limited - Nominated adviser Seema Paterson 020 7523 8321 Kobalt Rebekah Alperin +1 310 770 1045 About SPARK Ventures SPARK Ventures is the leading quoted early-stage venture capital company inEurope managing £225 million on behalf of major institutional investors, leadingUK universities, and three quoted venture capital trusts. SPARK invests in entrepreneurs to create dynamic businesses in the technology,media, telecoms and healthcare & life sciences sectors. As well as capital, itbrings a wealth of experience of developing high growth companies from earlystage through to IPO or trade sale, adding value to its investments throughactive support and strategic direction. SPARK's focus is on building great companies from small beginnings: itsexperience blends ambition with the strategic, financial and commercial skillsthat enable it to maximise returns, both for investors and for portfoliocompanies. The SPARK Ventures team has been responsible for many successful exits includingMergermarket, Lastminute.com, Nomad, Footfall, Pricerunner, Elata, Glycart, OHMand Avidex amongst others. www.SPARKventures.com About Kobalt Kobalt is a leading independent music publisher offering global copyrightadministration, creative and synch/licensing services, and advances to writers,publishers and other publishing rights holders. With offices in London, NewYork, Nashville, Los Angeles, Berlin and Stockholm, as well as agents in over 20major territories, Kobalt administers more than 100,000 copyrights worldwide onbehalf of over 700 clients. Clients include Gwen Stefani, Moby, Barry Manilow,Dr. Luke (producer of Avril Lavigne, Kelly Clarkson, Pink), Ryan "Alias" Tedder(producer of Leona Lewis, Natasha Bedingfield) and Max Martin (producer ofSugababes, Britney Spears), Desmond Child, 8 Mile Style, Bridgeport Music,Shelly Peiken, The Hives, Editors, Hilary Duff, Richard Ashcroft, Nine InchNails amongst others. www.kobaltmusic.com This information is provided by RNS The company news service from the London Stock Exchange