The board of Believe has unanimously approved an offer for the company from a consortium led by chairman & CEO Denis Ladegaillerie, along with the EQT X fund and funds advised by TCV.
It follows Warner Music Group’s decision a week ago not to bid for the company.
The consortium made an offer in February to acquire all outstanding shares at €15 per share and take the company private. The offer was part of the consortium’s agreement to acquire the stakes of TCV Luxco, Ventech and XAnge, historical shareholders of Believe, taking the consortium’s ownership to 71.92% of the share capital.
The board of Paris-based Believe has now reviewed the recommendation of the Ad-Hoc Committee made up of independent directors, who considered the work of an independent expert.
While the offer has been accepted, the company is set to remain publicly listed as the consortium has opted not to implement a ‘squeeze out’ of shareholders. It means that Believe’s investors can either take advantage of the offer, set at a premium based on average trading prices, or remain as shareholders of the listed company.
The consortium will file its offer in the coming days.
Citigroup Global Markets Europe, acting as financial adviser to the company, confirmed to the board that the offer price is fair for the shareholders.
“Believe is a global leader in the digital music market, with strong French roots and one ambition: to become the go-to partner for all independent artists and labels worldwide,” said Denis Ladegaillerie, CEO and founder of Believe. “Thanks to this transaction, Believe will have all the necessary resources to continue the remarkable growth dynamic that the company has experienced in recent years.
“With the active and ongoing support of TCV, which has accompanied Believe since 2014, and the expertise of EQT, I am convinced that we will continue to make Believe the global reference for independent music, while seizing all the growth opportunities offered by the digital transformation of the music market, to put them at the service of creation and creators.”
Believe reported revenue of €880.3 million in 2023, which represented growth of 15.7%, or 14.4% in terms of organic growth.
The company has around 2,000 staff in 50 countries. Its portfolio of brands covering services for the music industry includes Believe, TuneCore, Nuclear Blast, Naïve, Groove Attack, AllPoints, Ishtar and Byond.
See the new edition of Music Week for our interview with Believe's British MD Alex Kennedy on growth plans in the UK.
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