UK’s Web3 Pioneer Serenade Set to Join Vinyl Group in Major Acquisition

Highlights:

• Vinyl Group has acquired Serenade, a United Kingdom Web3 start-up firm.
• The procurement aims to boost Vinyl Group’s presence in the crypto space as it focuses on digital collectibles.
• Serenade’s CEO has joined Vinyl Group as part of the purchase deal to drive a smooth transition.

On September 30, Diversified Australian-based music technology firm Vinyl Group (ASX: VNL) announced that it acquired Serenade, a crypto start-up platform domiciled in the United Kingdom. Interestingly, Vinyl Group noted that its latest procurement marks part of its expansion in the crypto space, especially digital collectibles.

Relaying the acquisition news to followers on X, Josh Simons, the Chief Executive Officer (CEO) at the Vinyl Group, remarked:

“This acquisition will see physical and digital collectibles added to Vinyl.com and accelerates the platform’s expansion to UK and European markets.”

I’m thrilled to reveal that @VNLASX has purchased Web3 platform @joinserenade, a play that sees us double down on tech. Serenade CEO @max_shand will also join Vinyl Group.

Serenade’s digital marketplace has served 200+ global artists including Liam and Noel Gallagher, Muse, Sum…

— Josh Simons (@josh_simons_) September 30, 2024

Financial Costs Of Vinyl Group’s Latest Procurement

According to a published document containing the purchase details, Vinyl Group will first remit $554,700 to initiate the acquisition process. After the initial payment, the music technology company will pay an extra $1 million to offset Serenade shareholders’ bills.

Notably, the additional $1 million had some conditions attached to it, which the released document spelled out:

“A further $1,500,000 in shares will be paid to the shareholders of Serenade, contingent on the combined business of Vinyl.com and Serenade achieving a minimum revenue target of $2.7 million and Earnings Before Interest and Taxes (EBIT) of $346,700 in the 12 months following the Completion Date.”

The implications of meeting the purchase criteria mean that Vinyl Group will become Serenade’s new owner. The ownership cuts across all the crypto platform’s assets, which includes 100% of shares in its United Kingdom branch.

Serenade’s Exploit in the Crypto Space that Attracted Vinyl Group’s Interest

Before its acquisition, the Web3 start-up had been making waves in the crypto space, evidenced by its commendable achievements. Notedly, Serenade’s digital marketplace has gained global prominence, attracting top-rated artists, including Thirty Seconds to Mars, Sum 41, Muse, Liam and Noel Gallagher, etc.

In other aspects of growth, Serenade’s Near Field Communication (NFC) enabled Smart Formats have witnessed tremendous adoption in less than a year. For context, the NFC-linked entity graced the crypto market space in January 2024. Following its release, its sales rate has recorded 56% in month-over-month (MoM) increments. In addition, roughly 12,000 units of the Smart Formats exchanged hands in profitable sales in the first half of the year.

In the global musical industry, Serenade has scored collaborations with several leading record labels that have helped the platform’s expansion achievements. Some music labels in partnership with the Web3 start-up include Beggars Group, Concord, Warner Music Group, Glassnote, FUGA, and PIAS.

Key Executives at Serenade will Join Vinyl Group Following the Acquisition

As part of the procurement agreement, top executives at the Web3 pioneer firm will join Vinyl Group to aid the transition process. Most significantly, Serenade’s CEO, Max Shand, has joined the music technology firm to begin a full-time employment role. His duties will mainly involve enhancing Vinyl.com’s business and expanding its product options into physical and digital entities.

In addition, the former CEO’s new role will involve the development of an additional market. It is worth noting that Shand’s automatic employment came with exciting incentives that made it easier for him to assume the new position. Notably, he will amass five million options, which the company will distribute in two equal trenches following sales completion.