Swiss Music fintech company Utopia Music has bought Lyric Financial, a music financial services company.
Lyric Financial's technology powers music tech platforms by enabling automated decision-making, granting creators immediate royalty payouts in the form of credit.
Its work will enable Utopia to expand into the United States, and will help widen the company's global reach and market access.
Likewise, by partnering with Utopia, Lyric Financial will gain "competitive advantage, strength, and optimised market positioning" in the music technology market, according to the announcement.
Founded in Switzerland in 2016, Utopia's mission is to build a new music ecosystem that will create new revenue streams, consolidate data and reduce the restrictive administrative overhead limitations created by antiquated systems.
Matthis Hjelmstedt, founder and chairman of the board at Utopia Music, described the acquisition as "yet another milestone on our journey of becoming the leading financial services provider and growth partner in music."
He continued: "We are supercharging the entire music industry by creating new revenue streams, consolidating data, reducing administration costs, and offering a broad spectrum of diverse and deeply innovative services and effectively removing roadblocks and showstoppers that have slowed the industry down for too long. Acquiring Lyric Financial is a key enabler in helping creators and performers get paid faster and enable more creators and performers to make a living off their art.”
The announcement follows Utopia's acquisiton of Quincy Jones’-backed metadata and AI business, Musimap, in September 2021.