Universal Music Group is to fully acquire Ingrooves Music Group.
The major has been a minority investor in Ingrooves since 2006. It has now agreed to acquire the shares it does not already own in the independent music distribution and marketing company.
After the transaction closes, Ingrooves CEO Bob Roback will continue to head up the company as a standalone unit within UMG.
The acquisition of Ingrooves is expected to close before the end of the current quarter. It complements UMG’s existing distribution and marketing relationships with the global independent music community, as well as bolstering the major’s distribution business as parent Vivendi looks to sell up to 50%.
UMG will work closely with the Ingrooves management team to provide additional resources and expanded geographic reach. Additionally, the major will form a strategic partnership between its Caroline International division and Ingrooves to form a platform for distribution, marketing and label and artist services throughout the world.
The continued success of the indie community is vital to the health of our industry
Boyd Muir, EVP, chief financial officer and president of operations for UMG, said: “I’m thrilled to advance UMG’s long-standing relationship with Ingrooves, a company we already view as a member of our extended family. The continued success of the indie community is vital to the health of our industry, and through our investment in Ingrooves, we will strengthen the services we can offer to independent artists and entrepreneurs. I’m pleased to welcome Bob and his team to UMG and I’m looking forward to growing Ingrooves together.”
Bob Roback, CEO of Ingrooves, said, “This acquisition by UMG represents the very best possible outcome for Ingrooves, our employees and our artist and label partners. Our mission at Ingrooves has always been to provide our clients with the very best services and to maximise the value of their music. With UMG, we are gaining the resources, global reach and technology to take those efforts to another level. I’m excited at this opportunity and I’m thankful for the support of Boyd and Sir Lucian Grainge.”
Since launching in 2002, Ingrooves has provided independent labels, artists and other content owners with analytics, rights management services, and marketing solutions. The company combines its technology platform and data-driven insights with a team of global music marketing experts.