Financial Express (Holdings) Limited (“we”, “our”, “us” and derivatives) are committed to protecting and respecting your privacy. This Privacy Policy, together with our Terms of Use, sets out the basis on which any personal data that we collect from you, or that you provide to us, will be processed by us relating to your use of any of the below websites (“sites”).


For the purposes of the Data Protection Act 1998, the data controller is Trustnet Limited of 2nd Floor, Golden House, 30 Great Pulteney Street, London, W1F 9NN. Our nominated representative for the purpose of this Act is Kirsty Witter.


We collect information about you when you register with us or use any of our websites / services. Part of the registration process may include entering personal details & details of your investments.

We may collect information about your computer, including where available your operating system, browser version, domain name and IP address and details of the website that you came from, in order to improve this site.

You confirm that all information you supply is accurate.


In order to provide personalised services to and analyse site traffic, we may use a cookie file which is stored on your browser or the hard drive of your computer. Some of the cookies we use are essential for the sites to operate and may be used to deliver you different content, depending on the type of investor you are.

You can block cookies by activating the setting on your browser which allows you to refuse the setting of all or some cookies. However, if you use your browser settings to block all cookies (including essential cookies) you may not be able to access all or part of our sites. Unless you have adjusted your browser setting so that it will refuse cookies, our system will issue cookies as soon as you visit our sites.


We store and use information you provide as follows:

  • to present content effectively;
  • to provide you with information, products or services that you request from us or which may interest you, tailored to your specific interests, where you have consented to be contacted for such purposes;
  • to carry out our obligations arising from any contracts between you and us;
  • to enable you to participate in interactive features of our service, when you choose to do so;
  • to notify you about changes to our service;
  • to improve our content by tracking group information that describes the habits, usage, patterns and demographics of our customers.

We may also send you emails to provide information and keep you up to date with developments on our sites. It is our policy to have instructions on how to unsubscribe so that you will not receive any future e-mails. You can change your e-mail address at any time.

In order to provide support on the usage of our tools, our support team need access to all information provided in relation to the tool.

We will not disclose your name, email address or postal address or any data that could identify you to any third party without first receiving your permission.

However, you agree that we may disclose to any regulatory authority to which we are subject and to any investment exchange on which we may deal or to its related clearing house (or to investigators, inspectors or agents appointed by them), or to any person empowered to require such information by or under any legal enactment, any information they may request or require relating to you, or if relevant, any of your clients.

You agree that we may pass on information obtained under Money Laundering legislation as we consider necessary to comply with reporting requirements under such legislation.


We want to ensure that the personal information we hold about you is accurate and up to date. You may ask us to correct or remove information that is inaccurate.

You have the right under data protection legislation to access information held about you. If you wish to receive a copy of any personal information we hold, please write to us at 3rd Floor, Hollywood House, Church Street East, Woking, GU21 6HJ. Any access request may be subject to a fee of £10 to meet our costs in providing you with details of the information we hold about you.


The data that we collect from you may be transferred to, and stored at, a destination outside the European Economic Area (“EEA”). It may be processed by staff operating outside the EEA who work for us or for one of our suppliers. Such staff may be engaged in, amongst other things, the provision of support services. By submitting your personal data, you agree to this transfer, storing and processing. We will take all steps reasonably necessary, including the use of encryption, to ensure that your data is treated securely and in accordance with this privacy policy.

Unfortunately, the transmission of information via the internet is not completely secure. Although we will do our best to protect your personal data, we cannot guarantee the security of your data transmitted to our sites; any transmission is at your own risk. You will not hold us responsible for any breach of security unless we have been negligent or in wilful default.


Any changes we make to our privacy policy in the future will be posted on this page and, where appropriate, notified to you by e-mail.


Our sites contain links to other websites. If you follow a link to any of these websites, please note that these websites have their own privacy policies and that we do not accept any responsibility or liability for these policies. Please check these policies before you submit any personal data to these websites.


If you want more information or have any questions or comments relating to our privacy policy please email [email protected] in the first instance.

 Information  X 
Enter a valid email address

7digital Group PLC (7DIG)

  Print      Mail a friend

Tuesday 20 June, 2017

7digital Group PLC

Acquisition and Major New Contracts

RNS Number : 5352I
7digital Group PLC
20 June 2017



20th June 2017


7digital Group plc

("7digital" or "the Company")


Acquisition of 24-7 for £2.2m in stock and cash
including major new contracts with total value of £18m

and acquired balance sheet cash of £1.1m



·    Acquisition of significant European competitor 24-7 Entertainment ("24-7") for £2.2m from MediaMarktSaturn ("MMS") through the issue of 23,144,616 new Ordinary Shares and £0.9m of cash in respect of funds held on the 24-7 balance sheet

·    Transaction expected to add approximately £5m to 7digital revenues in 2017 and more than £8m in 2018

·    MMS, Europe's largest electronics and entertainment retailer, becomes largest shareholder in 7digital and a new customer with;

a three year contract for existing "Juke!" services totaling £11m; and

a new contract for development of future services worth £6m

·    New customer contracts from acquisition, other than those with MMS, with contracted revenues of £1m and total annualised value of £2.7m

·    Acquisition expected to be significantly earnings enhancing in 2018


Further to its announcements of 10 March 2017 and 6 June 2017, 7digital (AIM:7DIG) is pleased to announce that it has agreed to acquire the business of 24-7, a significant European competitor and B2B provider of digital music services, headquartered in Copenhagen (the "Acquisition"). The Acquisition is expected to complete on 21 June 2017.

7digital has agreed to acquire 100 per cent of 24-7 Entertainment ApS, together with certain other assets from MMS, Europe's largest retailer of consumer electronics, which, via its brands MediaMarkt, Saturn and Redcoon operates in 15 European countries and has approximately 6 million customer contacts every day. 24-7 is the technical backend and catalogue provider for digital music service, Juke!, that MMS delivers to customers in selected countries.

As part of the Acquisition, MMS will become one of 7digital's largest customers with a range of existing and new services and will also become its largest shareholder. Three year contracts totalling £11m have been agreed for existing services. A new contract to the value of £6m over its lifetime, including an initial set up fee of £1.4m, has also been agreed with MMS to develop several new digital music services. Under the terms of the Acquisition, a proportion of these revenues are expected to be paid to 7digital within 14 days of completion, further strengthening the Company's balance sheet.

24-7 has other significant customers, including Danish telecom operator TDC, which together account for anticipated annual revenues of £2.7m.

MMS is the largest 'bricks and mortar' retailer of packaged music in Europe and is therefore a significant influence as the music industry transitions to a digital streaming future. In its recent report on the industry, PWC estimated that revenues from streaming would become the largest source of global recorded music sales in 2017, rising 37 per cent. to $9.1 billion ["Global Entertainment & Media Outlook 2017-2021", PWC, Ovum]. The digital strategies of major retailers like MMS will strongly influence this transition.

The business being acquired, which comprises 24-7 Entertainment ApS and certain associated assets and contracts, does not produce consolidated standalone audited financial information. On the basis of due diligence undertaken and the detailed review of certain management accounts, the Company estimates that the Acquisition will increase 7digital licensing revenue in 2017 by approximately £5m and more than £8m in 2018. The Company expects that the Acquisition will be earnings enhancing in 2018 and the Directors expect that the Company, as enlarged by the Acquisition, will be both profitable and cash generative in 2018. At 31 May 2017, it is estimated that 24-7 had net assets of approximately £1m including £1.1m of cash.

The total consideration of £2.2m will be satisfied by the issue of 23,144,616 new Ordinary Shares to MMS. In addition, 7digital has agreed to pay an initial cash payment of £0.9m in respect of the cash which remains on the balance sheet of 24-7.  A balancing cash sum will be received, or paid, by the Company within three months of the Acquisition in relation to the final audited net assets of 24-7 Entertainment ApS at 31 May 2017.

Application has been made for the 23,144,616 new Ordinary Shares to be admitted to trading on AIM ("Admission") and dealings are expected to commence on 21 June 2017. The new Ordinary Shares will rank pari passu with the Company's existing Ordinary Shares. Completion of the Acquisition will take place on Admission. Pursuant to Admission, MMS will hold a total of 23,144,616 Ordinary Shares of the Company representing approximately 12.7 per cent. of the total voting rights of the Company (as enlarged by the Acquisition and Admission). 

The total number of Ordinary Shares in issue following Admission will be 183,011,298 of which 28,336 are held in Treasury. Accordingly, the figure of 182,982,962 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA's Disclosure and Transparency Rules.

Simon Cole, Chief Executive of 7digital, said:

"We set out three years ago to create a profitable, globally dominant player in what we believed would be a rapidly expanding market for the technology and content needed to build streaming music services. This transaction represents the culmination of that strategy, completing our consolidation of European competitors - following the Snowite acquisition last year - and transforming 7digital in terms of size, scale and profitability.

MediaMarktSaturn is of central importance to the European music industry as it builds from a year in which the importance of streaming to future revenues has been confirmed. For one of the world's top retailers of music to make the statement MMS is making by committing to this digital strategy sends an important signal about broadening the digital services available to consumers.

For 7digital, the revenues will nearly double our licensing revenues and confirm 2018 as a year of healthy profit and positive cashflow."

Wolfgang Kirsch, COO MediaMarktSaturn Retail Group and CEO MediaMarktSaturn Deutschland, said:

"As the number one music retailer in Europe, music streaming is increasingly important for us. Being a shareholder of 7digital will enable us to strengthen our digital entertainment service Juke! and develop further business models for the growing music streaming business."




7digital Group

020 7099 7777

Simon Cole, Chief Executive

Matt Honey, Chief Financial Officer

Holly Ashmore, PR Manager


finnCap (nominated adviser and broker)


020 7220 0500

Geoff Nash / Carl Holmes / Simon Hicks - Corporate Finance

Mia Gardner - Corporate Broking


Weber Shandwick (financial PR agency)

Nick Oborne - [email protected]

Tom Jenkins - [email protected]


About 7digital (


020 7067 0000

7digital is the global leader in end-to-end digital music solutions. The core of its business is the provision of robust and scalable technical infrastructure and extensive global music rights used to create music streaming and radio services for a diverse range of customers - including consumer brands, mobile carriers, broadcasters, automotive systems, record labels and retailers. 7digital also offers radio production and music curation services, editorial strategy and content management expertise.

7digital fosters industry growth and innovation by simplifying access to music for clients such as Onkyo, Global Radio and From years of being the largest independent producer of programming for the BBC, launching Radioplayer in multiple territories, and powering services for partners like HMV, Electric Jukebox and Panasonic, 7digital is perfectly positioned to lead innovation at the intersection of digital music and next-generation radio services.



The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014


This information is provided by RNS
The company news service from the London Stock Exchange

a d v e r t i s e m e n t