Reservoir has announced a merger that will result in the publisher going public on the NASDAQ stock exchange.
Reservoir Holdings is to merge with NASDAQ-listed Roth CH Acquisition Co. II, a publicly traded special purpose acquisition company with $115 million in trust. Upon closing of the transaction in the third quarter of 2021, the combined company will be renamed Reservoir Media Inc.
The transaction gives Reservoir Media an enterprise valuation of approximately $788 million. Following the transaction and after payment of transaction expenses, Reservoir is expected to receive approximately $246 million in cash.
Founder and CEO Golnar Khosrowshahi will continue to lead the combined company. According to the announcement, Reservoir will be the first independent music company to go public in the United States and also the first female-founded and led music company to be publicly traded in the United States.
Reservoir’s music publishing catalogue consists of more than 130,000 copyrights. It includes evergreen compositions such as It’s Your Thing by The Isley Brothers, Ring of Fire by Johnny Cash, Take Me Home, Country Roads by John Denver, and Senorita by Shawn Mendes and Camila Cabello.
Golnar Khosrowshahi said: “From day one, our mission has always been to be the best independent music company in the industry. Today we have taken an important step forward in Reservoir’s evolution to fully realize that vision through our partnership with Roth CH II. Our dedication to our songwriters and artists and their music is at the heart of everything that we do, and this path to growth supports our promise to service our clients, enhance value, and build a quality catalog. I am immensely proud of what we have built alongside president & COO Rell Lafargue, and our incredible team whose excellent skills, high-touch client service, and outstanding track record is unmatched.”
Partners of Roth Capital and Craig-Hallum, sponsors of Roth CH II, said: “We are thrilled to be partnering with Reservoir and its exceptional leadership team. Reservoir has built an outstanding collection of hit songs and soundtracks in both its music publishing and masters businesses, and has a unique and differentiated value enhancement model that drives highly attractive returns. We are excited about Reservoir’s strong cash flow generating capabilities in a growing industry with significant tailwinds. The portfolio is fully diversified in all genres of music with some of the most iconic hits of the past hundred years. We look forward to Reservoir pursuing future organic growth and acquisitions in this exciting sector under consolidation.”