Australian music technology company Vinyl Group has announced an agreement to acquire Serenade, a London-based Web3 start-up specializing in digital collectibles. This acquisition positions Vinyl Group to enhance its presence in the rapidly growing digital collectibles market.
Details of the Acquisition
As part of the deal, Vinyl Group will acquire 100% of Serenade’s assets, including its UK subsidiary. The agreement involves an upfront payment of AUD $800,000 (approximately USD $554,700), with an additional AUD $1.5 million (around USD $1 million) in shares to be paid to Serenade’s shareholders. This contingent payment hinges on the newly formed entity achieving a revenue target of AUD $4 million (USD $2.77 million) and earnings before interest and taxes (EBIT) of AUD $500,000 (USD $346,700) within the first year after the deal’s completion.
Recognition and Growth
Serenade has garnered attention for its innovative digital marketplace, attracting prominent global artists such as Liam and Noel Gallagher, Muse, Sum 41, and Thirty Seconds to Mars. The start-up’s NFC-enabled Smart Formats, launched in January 2024, have seen impressive growth, with sales increasing by 56% month-over-month and over 12,000 units sold in the first half of this year.
Additionally, Serenade maintains partnerships with over 100 record labels, including industry giants like Warner Music Group, Beggars Group, and PIAS, solidifying its reputation as a leader in the Web3 space.
Notable Offerings
One of Serenade’s standout offerings is Noel Gallagher’s “Digital Pressings,” which include digital albums, EPs, and singles featuring high-resolution music along with bonus audio, images, and video content available for streaming.
Beyond its current focus on music, Serenade is exploring expansion opportunities into other entertainment sectors, such as sports. Following the acquisition, Serenade will operate alongside Vinyl Group’s brand, Vinyl.com, with an emphasis on enhancing the profitability of the company’s fastest-growing division.
Leadership Continuity
Max Shand, CEO of Serenade, will remain with the company under a full-time employment contract with Vinyl Group. In a statement, Shand expressed enthusiasm about the acquisition, noting, “From our very first conversation, it was clear that Josh, Jorge, and the Board shared our vision for supporting artists and audiences through outstanding music products. I’m excited to see how this partnership accelerates our impact.”
