Shares in 7Digital Group PLC (7DIG.LN) jumped Tuesday after it announced the acquisition of rival digital music company 24-7 Entertainment for 2.2 million pounds ($2.8 million) from Europe's biggest consumer electronics retailer MediaMarktSaturn.
The digital music firm said the deal makes MediaMarktSaturn it biggest shareholder with a 13% stake, and adds GBP5 million to 2017 revenue and more than GBP8 million in 2018. 7Digital provides technology for music and film retailer HMV's online music download store.
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7Digital's total revenue was GBP11.9 million in calendar year 2016.
It will issue 23.1 million shares to MediaMarktSaturn and pay GBP900,000 in cash.
Copenhagen-headquarted 24-7's activities include providing a music download service to the telecommunications company 3 in Austria.
MediaMarktSaturn is a subsidiary of the German retail giant Metro AG (MEO.XE).
Shares at 0735 GMT, up 2 pence, or 40.9%, at 8 pence valuing the company at GBP12.4 million.
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(END) Dow Jones Newswires
June 20, 2017 04:29 ET (08:29 GMT)