Universal Music Group, the world’s biggest music company, is swallowing up another indie distributor, Ingrooves.
UMG has been a client, partner and minority investor since 2006, when it snapped up 20-25 percent of the digital distribution, marketing and promotion services company. Now, UMG is raising its stake. Through a new arrangement announced overnight, the music major will acquire the shares of Ingrooves that it doesn’t already own for an undisclosed amount.
Aussie artists and label plugged into the machinery won’t hindered by the new deal, UMG insists. As part of the arrangement, the music giant will form a strategic partnership between its Caroline International division and Ingrooves to form what it describes as a “robust platform for distribution, marketing and label and artist services” in Australia and around the globe. Caroline Australia, the label services company, opened for business in May 2013 and works with such partners as Spunk, Fiction, PMR, Popfrenzy and homegrown artists C.W. Stoneking, Marlon Williams and Alex Lahey.
When the deal is done, Ingrooves will continue to operate as a standalone company, led by CEO Bob Roback, a UMG statement reads.
Since launching 2002 in Los Angeles, Ingrooves has become a key provider of services for indie labels, artists and other content owners. A so-called “friend of AIR,” the company provides clients with customized distribution, marketing, promotion, sync licensing and administrative support and more.