Canadian media group Stingray has announced plans to acquire TuneIn in a deal worth up to US$175 million.
Under the terms of the deal, Stingray will pay US$150 million on completion, with up to US$25 million due a year later.
TuneIn, which serves over 75 million active listeners each month and provides access to more than 100,000 radio stations and podcasts, is forecast to generate US$110 million in revenue this year with adjusted EBITDA of US$30 million.
The transaction, expected to close by the end of the year subject to shareholder and regulatory approvals, will be financed through Stingray’s renewed credit facility, which includes an additional US$150 million term loan.
Once completed, the deal will lift the combined group’s annual revenue to more than US$400 million.
Eric Boyko, Stingray’s president, co-founder and chief executive, said the acquisition represented “a pivotal moment” for the company.
“We are crafting an unmatched audio ecosystem by merging Stingray’s extensive technology infrastructure and content distribution capabilities with TuneIn’s expertise in monetisation, advertising technology, and diverse content offerings,” he said.
TuneIn’s chief executive, Richard Stern, described Stingray as “the ideal partner to propel TuneIn’s next chapter of growth”, adding that the partnership would “accelerate our mission of delivering the world’s best audio content to listeners everywhere”.
The acquisition will see Stingray combine its music and video services with TuneIn’s distribution across more than 200 connected platforms and 50 in-car audio systems.
Following completion, TuneIn will continue to operate under its existing brand.