7digital to be taken over by UBC Media Group

 7digital to be taken over by UBC Media Group UBC Media Group (LON: UBC) has conditionally settled to acquire privately owned 7digital, owner of a popularly-used digital music technology platform.

The two companies had signed a letter of intent and were now aiming towards accomplishing of an agreement by 16 December and plans to close the deal in April, UBC said in a statement on Monday.

Announcing its aim to buy 7digital, UBC has lent £1mln to 7digital by means of the purchase of convertible loan notes issued by 7digital.

7Digital supplies digital music services for brands including Samung, HMV and HTC, as well as its own download sites, and collected revenues of more than £11m in 2012 as compared to £3m in 2009.

UBC, the largest shareholder in audio-sharing service AudioBoo, stated that the agreement will build a company with nearly 5 million registered users and its services preloaded on 60m mobile devices.

The company declared on Monday that AudioBoo in October achieved 24m audio listens and registered users had increased from 600,000 to 1.9 million in  one year.

The company supplies multimedia content to the BBC and 250 commercial radio stations, while its interactive division provides the software behind the UK RadioPlayer's station listings and search functionality.