Media Group Entertainment One is buying music production-library firm Audio Network, in a deal that values the latter company at £178m (around $232m), and which will see eOne owning 100% of Audio Network.
“The acquisition enhances eOne’s presence in music, a fast-growing sector with attractive growth that is complementary to eOne’s existing music, film and television businesses,” explained the company’s announcement yesterday. “The combined business is expected to create scale, synergies and revenue opportunities across eOne. With nine offices and teams around the world, Audio Network brings longstanding partnerships with more than 1,000 artists and composers to eOne to benefit from the Group’s record label services and extensive film, television and brand capabilities.”
In its last financial year, which ended on 30 June 2018, Audio Network generated £29m of revenues and £10m of profit before tax. eOne is funding the move via a new placing of shares, as well as a round of debt financing.