Vinyl Group to acquire UK Web3 startup Serenade
Date: 2024-09-30 Author: Gabriel Deangelo Categories: BUSINESS
Australian music technology company Vinyl Group has reached an agreement to acquire London-based Web3 startup Serenade, which is focused on digital collectibles.
Under the terms of the deal, ASX-listed Vinyl Group will gain full control of Serenade’s assets, including 100% of its UK subsidiary. The acquisition is intended to strengthen Vinyl Group’s position in the fast-growing digital collectibles segment.
The financial terms of the deal include an initial payment of AUD$800,000 (US$554,700) and an additional AUD$1.5 million (around US$1 million) in shares to be made to Serenade shareholders subject to the combined companies achieving revenues of AUD$4 million (US$2.77 million) and earnings before interest and tax (EBIT) of AUD$500,000 (US$346,700) within 12 months of the deal closing.
Serenade is a startup that has gained notoriety for its digital marketplace, which has attracted global stars including Liam and Noel Gallagher, Muse, Sum 41 and Thirty Seconds to Mars. In January 2024, the company launched its NFC-enabled “smart formats” technology, which resulted in a 56% month-on-month sales growth and more than 12,000 units sold in the first six months of this year.
In addition, Serenade has partnerships with over 100 music labels, including industry giants such as Warner Music Group, Beggars Group and PIAS, strengthening its position in the Web3 sector.
New Opportunities for Serenade and Vinyl Group
The Serenade marketplace offers collectible physical and digital products that combine high-quality music files with additional audio, images and video. These products include digital albums and singles by Noel Gallagher, which can be streamed through the Serenade platform.
In the future, the company plans to expand its range of services beyond the music industry and into new markets such as sports. As a result of the acquisition, Serenade will operate under the Vinyl Group brand, Vinyl.com, with a focus on driving profitability in this fast-growing part of the business.
As part of the deal, Serenade CEO Max Shand will remain in his role while joining Vinyl Group full-time. In a statement, he expressed delight at the deal, noting that both companies share similar values in supporting artists and audiences, and expressed confidence in the success of the partnership.
