Universal Music Group to acquire Indie Label Group [PIAS]

The founders of the indie label group [PIAS] announced that they are selling their remaining shares in the company to Universal Music Group (UMG), making the music giant the company's majority shareholder.

In a statement on Tuesday (October 15) Kenny Gates said he and his [PIAS] co-founder Michel Lambot were selling their shares to UMG, which acquired 49% of the company in 2022, to “enable us to offer a truly global distribution platform and services to the independent music community.”

Financial terms were not disclosed for the deal, which expands a strategic global partnership between the two companies starting in 2021. When UMG acquired 49% of [PIAS] for an undisclosed sum the following year, Gates and Lambot retained majority control of the company.

His property [PIAS] It now appears to be fully in UMG's hands, although representatives for the European indie label group and UMG declined to elaborate on information contained in Tuesday's press release.

Details confirmed as part of the new arrangement include the merger of Virgin Music Group and [PIAS]of the service department [Integral]which provides physical and digital distribution services to more than 100 indie label partners, including ATO, Beggars Group and Secretly Group.

The newly combined groups will provide “independent entrepreneurs with world-class service and access to a tailored, autonomous international distribution network,” he said. [PIAS]. Representatives for the company and UMG declined to comment when asked whether the merger would result in job losses.

THE [PIAS] The Label Group, which includes indie labels Play It Again Sam, harmonia mundi, Spinefarm, Source and partners such as ATO, Heavenly, Mute and Transgressive, will remain completely autonomous, the company said. Artists signed or distributed by these companies include Nick Cave & The Bad Seeds, Kneecap, Sofiane Pamart, Sleep Token, Arlo Parks and Black Pumas.

“I'm selling my stock not my soul,” said Gates, who will remain chief executive [PIAS] and joined Virgin Music Group's central board and advisory group, in a statement.

“Since I agree [to] a strategic alliance with UMG in 2021, we found them to be supportive and committed partners who added real value to our offering,” Gates continued, describing the decision to divest the remaining founders' equity in [PIAS] as “realistic”.

The company's existing leadership team will continue to direct day-to-day operations “and nothing will change culturally or commercially for our existing customers and partners,” said Gates, who co-founded [PIAS] with Lambot in Brussels, Belgium in 1983.

Lambot said that although he initially had “some concerns” about working with UMG in 2021, the experience has exceeded his expectations.

“Our relationship to date has been fruitful, enjoyable and everything we hoped it would be,” she said. “This new phase, which will see us working even closer together, promises to be an exciting new era [PIAS]our staff, our partners and the artists we represent.”

“I've known Kenny and Michel for decades, starting in the '80s when we were all signing bands from emerging scenes in Europe,” UMG president/CEO Lucian Grainge added in a statement.

“Since then, Kenny and Michel have built [PIAS] to a label that represents authenticity and the best in independent music,” added Grainge. “And it's these qualities that are not only important to me personally, but that they do [PIAS] fits perfectly with UMG's business and creative culture.”

“We are thrilled with all that has been achieved in the past three years together and look forward to working with Kenny and Michel and their entire team, including their family of artists and labels, to further build [PIAS]of heritage,” said UMG Executive Vice President/CFO/President of Operations Boyd Muir. “Their experience and knowledge have greatly helped in the development of this dynamic area of ​​our business. Completing his acquisition [PIAS] Label Group and [Integral] it reinforces our best-in-class label services and enhances our ability to support the independent artist and label community worldwide.”