Digital music and radio platform 7digital Group PLC (LON:7DIG) has completed its purchase of French streaming provider Snowite SAS, which will be earnings enhancing and accelerate its international expansion, it told investors.
Snowite has contracted annualised monthly recurring revenues of around £864,000 and the purchase will accelerate 7digital's profitability, the firm said.
The buy is expected to increase group turnover by at least 2.1mln on a yearly basis.
The group paid 7.32mln shares for the company worth £649,650, which represents around 6.34% of the enlarged 7digital capital.
Chief executive of 7digital, Simon Cole said: "We are delighted to welcome Snowite to the group.
"With major French customers in the retail, mobile entertainment and media sectors and a strong sales pipeline in French-speaking markets, Snowite will accelerate 7digital's international expansion while strengthening our relationships with French music labels and publishers.
"Snowite's platform and technology should also benefit our development roadmap and allow the company to make cost savings in planned future platform investment."
In addition, the firm has negotiated with the French Commercial Courts downwards, the existing debt of Snowite to be repaid by the company over eight years, from €1.8mln to €1.7mln.
Broker finnCap said :"Snowite spent the past few years developing a leading-edge streaming platform; however, it was unable to support the debt it incurred in the process, and began insolvency procedures last September.
"7digital has taken over the business, bringing it an upgraded platform, a strong market presence in Europe and Africa and an impressive blue chip customer base, notably in the retail sector."
It targets 38p for the shares, which today eased 1.41% to stand at 8.75p.