Vinyl Group, an Australian music technology company, has announced plans to acquire a London-based Web3 start-up that specializes in digital collectibles. The acquisition will allow Vinyl Group to take control of the start-up’s assets, including all of its shares. The move is part of Vinyl Group’s strategy to enhance its presence in the digital collectibles market.
The deal involves an initial payment of AUS$800,000 (US$554,700) and an additional AUS$1.5 million (US$1 million) in shares to be paid to the start-up’s shareholders. The additional payment depends on the newly combined entity achieving a revenue target of AUS$4 million (US$2.77 million) and earnings before interest and taxes (EBIT) of AUS$500,000 (US$346,700) within 12 months of completing the deal. The start-up has become known for its digital marketplace, which has attracted major global artists such as Liam and Noel Gallagher, Muse, Sum 41, and Thirty Seconds to Mars.
The company’s NFC-enabled Smart Formats, launched in January 2024, have seen strong growth, with sales increasing 56% month-over-month and over 12,000 units sold in the first half of this year.
Vinyl expands into digital collectibles
The start-up also has partnerships with more than 100 record labels, including Warner Music Group, Beggars Group, and PIAS.
These relationships have helped establish the company as a leader in the Web3 space. Following the acquisition, the start-up will operate alongside Vinyl Group’s brand, Vinyl.com, with a focus on improving the profitability of the company’s fastest-growing division. As part of the agreement, the start-up’s CEO, Max Shand, will stay with the company under a full-time employment contract with Vinyl Group.
“I’m thrilled to announce this acquisition by Vinyl Group, Australia’s only ASX-listed music company,” said Shand in a statement. “From our very first conversation, it was clear that Josh, Jorge, and the Board shared our vision for supporting artists and audiences through outstanding music products, and so I’m excited to see how this partnership accelerates our impact,” he added. In addition to its focus on music, the start-up is exploring opportunities to expand its services into other entertainment sectors, such as sports.
The integration of the start-up’s digital marketplace and technologies aims to strengthen Vinyl Group’s offerings and market reach.
