Add-on Acquisition • Media

BMG Rights Management Acquires Bug Music

On September 12, 2011, BMG Rights Management acquired media company Bug Music from Spectrum Equity and Crossroads Media for 300M USD

Acquisition Context
  • This is BMG Rights Management’s 2nd transaction in the Media sector.
  • This is BMG Rights Management’s largest (disclosed) transaction.
  • This is BMG Rights Management’s 2nd transaction in the United States.
  • This is BMG Rights Management’s 1st transaction in California.

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M&A Deal Summary

Date September 12, 2011
Target Bug Music
Sector Media
Buyer(s) BMG Rights Management
Sellers(s) Spectrum Equity
Crossroads Media
Deal Type Add-on Acquisition
Deal Value 300M USD
Advisor(s) J.P. Morgan Securities (Financial)
Latham & Watkins (Legal)

Target Company

Bug Music

Los Angeles, California, United States
Founded in 1975, Bug Music, Inc. is one of the world's leading independent music publishers. Headquartered in Los Angeles, with offices in Nashville, New York, Atlanta, London and Munich, Bug owns and/or manages approximately 250,000 copyrights. The company has built a strong reputation as the 'songwriter's' publisher by supporting copyrights of songwriters and publishers and providing personalized administrative and creative services.
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Buyer Overview 1

Buyer

BMG Rights Management

Berlin, Germany

Category Company
Founded 1959
Sector Media
DESCRIPTION

BMG Rights Management is a start-up by years of existence, however considered a major international player in the music industry.


Deal Context for Buyer #
Overall 3 of 13
Sector: Media 2 of 11
Type: Add-on Acquisition 3 of 13
State: California 1 of 2
Country: United States 2 of 5
Year: 2011 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2010-09-20 Evergreen Copyright Acquisitions

Nashville, Tennessee, United States

Evergreen Copyright Acquisitions is a music publishing company formed to aggregate and optimize small to medium sized catalogs of music copyrights. The company earns royalty income from the use of song copyrights commercially, including public and radio performances, use in television, movies and commercial advertisements, as well as from the sale of CDs, DVDs, digital recordings and sheet music.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-02-17 Sanctuary Records Group

Raleigh, North Carolina, United States

Sanctuary Records Group, Inc. is a provider of music production and recording services.

Buy -

Seller Profiles 2

SELLER

Spectrum Equity

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1994
PE ASSETS 8.2B USD
Size Mega
Type Sector Focused
DESCRIPTION

Spectrum Equity Management L.P. is a private equity investor focused on service businesses. Spectrum specifically targets established businesses in the media, communications, IT, information, and business services industries. The Firm looks to commit $25 to $150 million of equity capital per transaction and focuses on opportunities throughout North America and Western Europe. Prospective transaction situations include leveraged buyouts, recapitalizations, acquisition financings, and secondary purchases. Spectrum Equity Investors was formed in 1994 and has offices in Boston, Massachusetts and Menlo Park, California.


Deal Context for Seller #
Overall 29 of 77
Sector: Media 4 of 5
Type: Add-on Acquisition 20 of 46
State: California 5 of 11
Country: United States 27 of 68
Year: 2011 6 of 7
Size (of disclosed) 21 of 27
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2011-08-22 QTC Holdings

Diamond Bar, California, United States

QTC Holdings Inc. is a provider of outsourced disability evaluations in the United States. Through its nationwide network of contract providers and proprietary workflow software and technology, QTC manages every aspect of the disability evaluation process, from the point of initial appointment setting and exam preparation, to report preparation and generation, to final billing and payment.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2011-11-16 Interbank Fx

Salt Lake City, Utah, United States

Interbank FX, LLC is a leading provider of online foreign exchange trading services, offering individual traders, fund managers and institutional customers proprietary technology and tools to trade spot foreign currency online.

Sell -
SELLER

Crossroads Media

Lansing, Michigan, United States

Category Company
Founded 2006
Sector Media
DESCRIPTION

Crossroads Media LLC is an outdoor media services company providing outdoor advertising services.


Deal Context for Seller #
Overall 1 of 1
Sector: Media 1 of 1
Type: Add-on Acquisition 1 of 1
State: California 1 of 1
Country: United States 1 of 1
Year: 2011 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Bug Music

Los Angeles, California, United States

Founded in 1975, Bug Music, Inc. is one of the world's leading independent music publishers. Headquartered in Los Angeles, with offices in Nashville, New York, Atlanta, London and Munich, Bug owns and/or manages approximately 250,000 copyrights. The company has built a strong reputation as the 'songwriter's' publisher by supporting copyrights of songwriters and publishers and providing personalized administrative and creative services.

Buy -