Vinyl Group Acquires Serenade to Expand Digital Collectibles

Vinyl Group, Australia’s only listed music company, has acquired London-based Serenade, a platform specializing in digital and physical collectibles. The equity-based deal is valued at up to US$1.6 million and marks Vinyl’s expansion into the UK and European markets. L

Expanding Vinyl’s Digital Footprint

Vinyl launched its website last year, aiming to replicate the experience of “crate-digging” for records in digital form. CEO Josh Simons told, “The plan was always to expand Vinyl.com’s offering to include music merchandise, digital collectibles, and experiences that connect fans with creators. The acquisition of Serenade was the next step in that process.”

Serenade’s Unique Offerings

Serenade operates on the Polygon blockchain, offering a marketplace for both physical and digital collectibles. Their key product, NFC-enabled digital “Smart Formats,” has seen a 56% month-on-month sales growth since its launch in January. These Smart Formats are physical collectibles embedded with Near Field Communication technology, linking to digital assets or experiences hosted on a blockchain. Users can access exclusive content by interacting with the physical item through their smartphones.

Deal Details and Strategic Goals

Under the terms of the deal, Vinyl made an upfront payment of $553,000 in shares, with an additional $1 million in shares contingent upon revenue and earnings targets. The performance-related earn-out requires the combined business of Vinyl.com and Serenade to achieve $2.76 million in revenue and $345,000 in earnings within 12 months.

The deal was finalized over the weekend after Vinyl notified Serenade that due diligence requirements were met. Following the announcement, Vinyl’s share price jumped more than 8% on the ASX, reaching a three-week high above $0.06.

Serenade’s Artist Portfolio

Serenade has supported over 200 global artists, including high-profile names like Liam and Noel Gallagher, Muse, and Sum 41. The company also holds partnerships with major record labels, such as Warner Music Group and Beggars Group.

Future Prospects and Leadership Changes

Serenade’s CEO, Max Shand, will join Vinyl Group under a full-time employment agreement. He will receive five million options, vesting in stages upon achieving specific performance goals as part of his incentive package.

Vinyl Group’s acquisition of Serenade signifies a bold step in enhancing its digital collectibles space. By integrating Serenade’s innovative technology and extensive artist relationships, Vinyl aims to create unique experiences that connect fans with creators. This move not only expands Vinyl’s reach into new markets but also solidifies its position at the forefront of the evolving music industry.