An official press release stated that Fuga will “continue to function as a standalone business within Downtown’s suite of distribution and monetisation capabilities operated across AVL.”
The press release added that the acquisition will offer its clients and partners “expanded resources, infrastructure and global scale to more quickly bring to market added services and unparalleled innovation for music industry rights holders.”
Speaking about the deal, Fuga CEO Pieter Van Rijn said: “We could not be more enthusiastic about becoming part of the Downtown portfolio. This acquisition will give Fuga the backing to achieve our global ambitions in this space so we can continue serving the independent music community, developing our service offering and improving our technology. We share a common business approach and philosophy with Downtown, one rooted in providing control and flexibility for creators and rights holders — it is a perfect fit.”
Fuga – which says it offers content management, workflow and distribution services to more than 260 different digital service providers globally – enables distributors, record labels, artist services companies and other rights holders to directly reach the world’s music streaming market. It claims more than 500 different businesses – including labels, artist platforms, distributors and other rights holders – around the world rely on Fuga’s technology and services.
AVL CEO Tracy Maddux said: “Pieter and the team at Fuga have built an impressive business that offers clients an impeccably high level of service. Their robust technology, well-earned reputation for innovation on behalf of the clients they serve, and global perspective of the digital music industry are welcome additions to our existing set of capabilities and services.”
Downtown Music Holdings CEO Justin Kalifowitz added: “The exceptional team at Fuga and their unique focus on providing best-in-class capabilities has put the company at the forefront of empowering the fastest growing sector of the music industry. Following our acquisition of AVL, integrating Fuga is a natural next step for Downtown in developing businesses that support a more equitable and innovative music ecosystem.”
Last year, Downtown acquired AVL, which includes the CD Baby, Soundrop, DashGo and AdRev businesses.