Vinyl Group (ASX:VNL), Australia's only ASX-listed music company, has acquired the assets of London-based Web3 pioneer Serenade.
The acquisition will expedite Vinyl Group's expansion into the UK and European markets and incorporates Serenade’s physical and digital collectible platforms.
The transaction includes an upfront scrip payment of $800,000 and a further scrip earn-out of $1.5 million, based on revenue and earnings targets.
The Serenade platform will now operate alongside Vinyl.com to enhance the gross margins of Vinyl Group's fastest-growing division.
"Max Shand has built Serenade into a business with significant potential, and through our acquisition of the platform, we’ll put the resources into Serenade to allow it to reach that potential," said Vinyl Group CEO, Josh Simons.
"Vinyl Group is, at its core, a tech business and this was a great opportunity to expand our tech offering. We look forward to welcoming Max and other key members of the Serenade team to Vinyl Group," Simons added.
The digital marketplace of Serenade has served over 200 global artists including Liam and Noel Gallagher, Muse, and Twenty One Pilots, with substantial monthly growth since January.
Serenade has also signed commercial partnerships with more than 100 record labels, including Warner Music Group and Beggars Group.
Serenade CEO, Max Shand, expressed his enthusiasm, stating, "I'm thrilled to announce the acquisition of Serenade by Vinyl Group, Australia’s only ASX-listed music company. From our very first conversation, it was clear that Josh, Jorge, and the board shared our vision for supporting artists and audiences through outstanding music products, and so I'm excited to see how this partnership accelerates our impact."