Tag: sentric

Financials and Multiples on the Believe Digital and Sentric Music Publishing Deal

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.

Believe Digital Acquires Sentric Music Publishing from Utopia Music for $51 million

Believe Digital has acquired music publishing company Sentric for $51 million from Utopia Music.

This is a great move from Believe – and as Utopia have been in a lot of issues with debt recently – it feels like a bit of a fire sale.

“The acquisition of SENTRIC is the first step for BELIEVE in the roll-out of a global and comprehensive publishing offer. The growth and digital transformation of the songwriters’ market is opening-up many opportunities. We are excited to be able to immediately expand the services we provide to our existing TUNECORE clients with SENTRIC’s best-in-class royalty collection service, while starting to work on future innovative products and services for all of Believe’s songwriters and publishers.”

BELIEVE CEO DENIS LADEGAILLERIE said,

Believe is currently looking for more acquisitions – they normally focus around record labels, but this put Believe into a completely new market with a strong TAM.