UBC Media, the company co-founded by Simon Cole and Tim Blackmore in 1989, has completed its acquisition of 7digital Group.
The enlarged company will be known as 7digital and offer a range of production and digital services to the broadcast, technology and music industries.
At the same time, Audioboo, which 7digital will own almost 20%, will change its name to Audioboom.
UBC spent £16m on the takeover of 7digital and has raised £7m to fund the new company and further development, £1m of which has come from Imagination Technologies Group plc.
Simon Cole, CEO of UBC Media Group, commented: “This transaction will create a world leading digital music and radio platform that is ideally positioned to exploit the convergence of radio and digital music services. The new business will also be well-placed to drive consolidation of the fragmented B2B digital music industry. As we have been putting this transaction together, our joint management teams have already started winning business together and I am confident that the combination of our combined global networks in technology and media will create an opportunity on the London market for investors to benefit from the growth of this dynamic sector.”
Ben Drury, CEO of 7digital, added: “Digital music has come a long way since the invention of MP3 in the nineties but it is only now that the majority of consumers are beginning to embrace music streaming and download services. The 7digital open platform simplifies access to the world’s music and the combination with UBC will help further enhance the platform to include radio-style capability and services to help unlock the mass market for our customers and partners.”
The board of the new company includes Sir Donald Cruickshank, a director of Qualcomm Inc, who becomes non-executive chairman; and Sir Hossein Yassaie, chief executive of Imagination Technologies Group plc and Eric Cohen, SVP Corporate Development at Dolby Inc. becoming non-executive directors
The new group is expected to have a post new money valuation of approximately £29 million on Admission.