Stripes Group Announces A Significant Minority Investment In Audio Network
Investment and partnership to enable accelerated growth in music production, global expansion, distribution and technology innovation
NEW YORK, NY, July 30, 2013-- Stripes Group is pleased to announce a significant minority investment in Audio Network (the "Company"), a London-based, international music platform that specializes in providing music for film, television, advertisements and online video use on a subscription basis.
Stripes Group acquired an approximate 27% equity stake in Audio Network with the majority of its stake purchased from early angel investors. Audio Network's founders and management team will maintain more than 80% of their original holdings post the completion of the transaction. Audio Network has built a rapidly growing and profitable business with no prior institutional capital, and the Company has grown turnover at a compounded annual growth rate (CAGR) of over 40% over the last 5 years.
The investment signals Audio Network's vision and ambition to accelerate the growth of its core business by more rapidly expanding its originally produced and owned music catalog and by the entry into new international markets. With this transaction, Audio Network will further innovate and differentiate their technology platform, enhancing their clients' ability to easily search, discover and use Audio Network's extensive library globally.
With over 1 billion people consuming videos online from millions of producers annually(1), Audio Network sees technology innovation as a key driver to unlocking vast new distribution opportunities for their music.
Andrew Sunnucks, Audio Network Chairman and Co-Founder said, "We welcome Stripes Group to the team. It's crucial that we remain a creatively driven business which focuses on providing a valuable service to our customers around the world. As the international audio visual market explodes, there is ever more demand for great music, and we want to remain at the forefront of a rapidly expanding global opportunity."
Robert Hurst, Audio Network CEO and Co-Founder added, "We are particularly delighted that so many of our founding composer and employee shareholders have elected to keep 100% of their shares in the Company. The transaction will bring with it many opportunities for the Company's shareholders, staff and composers - the future looks incredibly exciting!"
Dan Marriott, Managing Partner at Stripes Group said, "We are thrilled to be partnered with Andrew and Robert and the entire Audio Network family. They have built an exceptional value proposition brick by brick for all of their constituents and a rapidly growing profitable Company at the same time - a rare combination. One of the most special parts of the story is their culture - customer-centric and full of creative energy and integrity. The time is right to invest in technology, distribution and music to accelerate their growth and we look forward to lending a hand to the Audio Network team on the road ahead."
About Audio Network:
With a catalog of over 64,000 original music tracks, Audio Network offers a complete technology-based music solution by cutting through the traditionally complex and costly processes of licensing music. All high quality tracks are pre-cleared for multiple formats, for the world, forever through their website at http://www.audionetwork.com.
This approach allows producers to make content for international distribution, emerging platforms and new media without the need to go through the complicated and expensive process of clearing individual tracks or re-versioning productions. Audio Network originally produces and owns the rights to their extensive catalogue which covers a full range of music styles from large scale orchestral to hip hop and from country to rock, and is licensed by thousands of clients globally ranging from consumers and independent filmmakers to brands such as BBC, NBC, MTV and Sony.
Audio Network's high quality music is created by its team of established international composers and recorded by major orchestras and artists including The Royal Philharmonic Orchestra, Dame Evelyn Glennie OBE and the late Sir John Dankworth CBE. In addition to supplying original scoring, audio branding, sound design services and working as creative partners alongside over 400 renowned composers, Audio Network now has interests and operations in multiple territories, worldwide.
Listed as one of the UK's fastest growing companies in the Sunday Times Tech Track 100 in both 2011 and 2012; and the Sunday Times Profit Track 100 in 2013, Audio Network has also received the Queen's Award for Enterprise: Innovation (Technology) in 2008 and again in 2012 for International Trade. Audio Network has grown its composer team, music catalogue and revenue from its music services every year since its incorporation in 2001 and despite continued reinvestment each year in future growth has grown its profit every year since 2006 when the Company first achieved profitability.
About Stripes Group:
Stripes Group is a leading growth equity firm that makes minority and majority equity investments in B2B/B2C Internet, Digital Media, SaaS, Software, Healthcare IT, and Branded Consumer Products businesses. The firm seeks to partner with founder driven, profitable, market-leading companies with proven business models that are generating exceptional growth. For more information on Stripes Group, please visit http://www.stripesgroup.com.
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