7digital has agreed to an acquisition of the company by b2b music licensing company Songtradr.
Songtradr, which was founded in 2014, has made an offer of £19.4 million for the UK b2b digital music company.
The deal has been agreed by the board and is set for shareholder approval.
The Songtradr platform is a B2B music licensing marketplace designed to connect music rights-holders such as artists, labels and publishers with brands, advertisers, video games, digital platforms and content creators.
The platform provides a suite of tools and services for rights-holders, and streamlined music discovery and licensing for b2b music users.
Paul Wiltshire, CEO of Songtradr (pictured), said: "Having closely followed 7digital's evolution for a long time, we are delighted to have reached agreement to combine our businesses, expanding our position in the b2b music licensing and technology ecosystem. We are very excited with respect to what our collective team will be able to achieve in delivering an enhanced offering for our clients and to help shape the future of music licensing."
Paul Langworthy, CEO of 7digital, said: "We are pleased to recommend this offer to be made by Songtradr as it is beneficial to both the operations of the company and our shareholders. Songtradr's ambition for the business matches our own and there is strong strategic alignment on how best to drive growth for the combined group, as well as how best to serve the needs of a growing b2b market.
“The offer recognises the underlying value of the company, providing all 7digital shareholders with the opportunity of a certain cash exit at an attractive premium to the prevailing market share price. We firmly believe that as part of the combined group, 7digital will have access to the capital, support and scale it needs to achieve its full potential."