Hipgnosis acquires Big Deal Music
Hipgnosis Songs Fund Limited NPV
69.00p
16:40 28/03/24
Intellectual property investor Hipgnosis Songs Fund acquired US-based Big Deal Music Group on Thursday for an undisclosed amount.
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16:50 28/03/24
The FTSE 250-listed firm said Big Deal would immediately be rebranded as Hipgnosis Songs Group, with founder Kenny MacPherson staying on to act as chief executive officer, reporting directly to Hipgnosis CEO Merck Mercuriadis.
Hipgnosis will fund the acquisition from proceeds of its equity fundraise back in July and through the issue of 17.60m new ordinary shares at a price of 120.65p each.
The company stated the acquisition represented a "key part" of its strategy of building a diversified portfolio by acquiring "proven hit songs of cultural importance" as Big Deal Music has a catalogue of over 4,400 songs, written by over 160 songwriters, and boasts 5 Grammy awards, 126 NMPA, BMI and ASCAP awards and 27 Recording Industry Association of America certifications.
Hipgnosis also highlighted that the acquisition provided it with access to a full-service music platform, bringing significant expertise and resources for managing and promoting its growing portfolio.
Merck Mercuriadis said: "This is an important move in the evolution of Hipgnosis Songs in our ability to deliver on the promise of Song Management not only globally but now in the heart of the world's biggest music market."
As of 0815 BST, Hipgnosis shares were up 0.41% at 122.50p.