This morning we posted about Believe Digital acquiring Sentric Music Publishing.
I wanted to provide a little more context about the acquisition.
Sentric – Companies House accounts – https://find-and-update.company-information.service.gov.uk/company/05721428/filing-history
2021 Year End Numbers:
- £29.5m Revenue (up 57% YOY)
- £24.2m COGS
- £4.8m GP (8.5x multiple to value)
- £1.2m NP (34x multiple to value)
Acquisition price was $51 million.
It feels like this was a good price on both counts. Utopia obviously sold Sentric at a discount, but they really need to get rid of the asset (they only purchased a year ago). Believe got a good asset in a new market – at a reasonable multiple.