Australian music technology company Vinyl Group has agreed to acquire London-based Web3 start-up specializing in digital collectibles, Serenade.
This deal will allow ASX-listed Vinyl Group to take control of Serenade’s assets, including 100% of the shares in its UK subsidiary. The acquisition is aimed at increasing Vinyl Group’s presence in the digital collectibles space.
The terms of the acquisition include an upfront payment of A$800,000 ($554,700) with an additional A$1.5 million ($1 million) in shares to be paid to Serenade shareholders. This additional payment is contingent on the newly merged entity achieving a revenue target of A$4 million ($2.77 million) and earnings before interest and taxes (EBIT) of A$500,000 ($346,700) within 12 months of the completion of the transaction.
Startup web3 has gained recognition for its digital marketplace, which has attracted global artists such as Liam and Noel Gallagher, Muse, Sum 41 and Thirty Seconds to Mars.
Their NFC-enabled Smart Formats, launched in January 2024, have seen growth, with sales up 56% month-on-month (MoM), and more than 12,000 copies sold in the first half of this year.
Serenade also has partnerships with more than 100 record labels, including industry giants such as Warner Music Group, Beggars Group and PIAS. These partnerships have helped solidify Serenade’s position as a leader in the Web3 space.
Serenade describes itself as a music company that creates collectible physical and digital products, packaging high-resolution music with additional audio, image and video content.
In addition to its focus on music, Serenade is exploring opportunities to expand its services into other entertainment sectors, such as sports. The acquisition will see Serenade operate alongside Vinyl Group’s brand, Vinyl.com, with a particular focus on improving the profitability of the company’s fastest-growing division.
As part of the deal, Serenade CEO Max Shand will remain with the company under a full-time contract with Vinyl Group. “I am pleased to announce the acquisition of Serenade by Vinyl Group, Australia’s only ASX-listed music company,” – Shand said in a statement.
“It was clear from our first conversation that Josh, Jorge and the board share our vision of supporting artists and audiences with outstanding music products, so I look forward to seeing how this partnership will accelerate our impact,” – Shand adds.
