7DIGITAL, a global b2b digital music and radio services company, plans to acquire French digital streaming music provider SNOWITE. 7DIGITAL and SNOWITE have signed "Heads of Terms," an agreement that binds the parties to a period of exclusivity and to completion of the transaction subject to a decision by the French Commercial Court. SNOWITE is currently in “Procédure de Sauvegarde” under French insolvency law -- a procedure similar to “Chapter 11” proceedings in the UNITED STATES.
7DIGITAL CEO SIMON COLE commented, “We have always maintained that – as the market for streaming music and radio services matures -- there will be opportunities to consolidate companies (such as SNOWITE) who operate within individual regions and do not have global scale. We were quite determined to be in a position to drive the consolidation. It is thanks to our global footprint, diverse roster of clients and hardworking team that we were able to start this process so recently after our merger and IPO.”
SNOWITE CEO LAURENT BOUQUET DES CHAUX commented, “This is a huge opportunity for SNOWITE and all its know-how and customers. We will continue to move the market, but with greater ambition. 7DIGITAL is an energetic and entrepreneurial group that will bring us the muscle, the network and the talent needed to develop the digital streaming world market even faster. SNOWITE will enrich the size and the digital expertise and data from 7DIGITAL group. Our cultures are very close, our know-how unusually complementary, our goals are the same.”
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