UBC Media has lent £1 million to London based 7digital by way of the purchase of a convertible loan note, starting a reverse takeover and eventual merger of the two companies.
7digital, which operates a music technology platform, is a private company with a turnover of £11m in 2012 and is keen to expand into the radio market.
The deal, if completed as envisaged, will create a company with customers ranging from the BBC and Yahoo! Europe to Samsung and HTC.
Simon Cole, CEO of UBC Media: “The combination of content and technology skills created by the potential merger with 7digital, will create a company with genuine global scale and access to both the mobile customers and the content needed to drive business in the digital age.”
Both UBC and 7digital have signed a letter of intent to bring the two companies together as one, which could be completed within six months.
Ben Drury, CEO of 7digital: “We will continue to develop and scale the platform as the market evolves, and to innovate with new products and features. Radio, in particular, is an area where we see a lot of future opportunities, and we are thrilled that our new strategic investor and partner, UBC, shares this vision.”
Established in 2004, 7digital employs more than 100 people, and is headquartered in London with offices in San Francisco, New York, Los Angeles, Luxembourg, Berlin and Auckland. 7digital powers services for many of the world’s leading brands, including Samsung, BlackBerry, T- Mobile, HMV, McDonalds and Pure.
Posted on Monday, November 25th, 2013 at 7:00 am by RadioToday UK