7digital has announced plans to acquire troubled French music streaming provider Snowite. The acquisition target is currently in “Procédure de Sauvegarde” under French insolvency law.
Snowite has been operating since 2006 and provides similar services to 7Digital. The company counts Cellfish and Vivendi as its customers, as well as French retailers Fnac and E.Leclerc, with an expected turnover of £1.1m.
7digital and Snowite have signed Heads of Terms, and the transaction is likely to go ahead unless the French Commercial Court has any objections.
As part of the French insolvency process, 7digital’s bid would end up being publicly available information within the court proceedings, which is why the company has had to break the news before the deal was completed.
7digital’s CEO Simon Cole commented on the opportunity to consolidate localised companies such as Snowite that struggle to reach global scale. It is currently unclear what that consolidation will look like and how many current Snowite employees will be retained.
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