MAY 20 I STEINWAY I ACQUISITION
Steinway Picks Up ArkivMusic
Steinway has acquired ArkivMusic, an online classical music recordings retailer. Specializing in classical music titles delivered directly to consumers, ArkivMusic sells more than 90,000 titles, including thousands of previously out-of-print recordings.
The company’s annual revenue growth rate has accelerated during the last four years, exceeding 30 percent in 2007, with a little more than $8 million in sales last year. ArkivMusic will continue to operate independently as a wholly owned subsidiary of Steinway.
“We are excited to have ArkivMusic and its employees join Steinway,” said Steinway CEO Dana Messina. “We share a passion for supporting outstanding music and musicians. This acquisition will help Steinway promote thousands of musicians that use our instruments around the globe.”
Steinway will pay $3 million in cash at closing and three annual payments of approximately $ 500,000. The transaction involves additional potential consideration based on ArkivMusic’s results during the next three years. Steinway does not expect the purchase to have a material impact on earnings in 2008.
“We are extremely excited to join forces with Steinway,” said ArkivMusic President Eric Feidner. “We believe the reach and resources of Steinway can help us achieve our global growth strategy. We believe our growing business and extensive relationships with customers, record labels and radio will add considerable value to a dynamic brand in classical music.”