STOCKHOLM, Nov. 21, 2017 /PRNewswire/ --
- EQT Mid Market joins forces with Epidemic Sound, a new breed of music company that collaborates with musicians all over the world to produce quality music that soundtracks everything from TV and film productions to online videos on YouTube or Facebook - consumers can also listen to tracks on streaming platforms such as Spotify
- EQT Mid Market will, together with the current shareholders, support Epidemic Sound's growth ambitions by leveraging on EQT's global footprint, experience in scaling high-growth businesses as well as digital expertise
The EQT Mid Market Europe fund ("EQT Mid Market") today announced that it is partnering up with Epidemic Sound (or "the Company"). Together with Oscar Höglund, Co-founder and CEO, his team and the A-round lead investor Creandum (which will increase its ownership in conjunction with the transaction), EQT Mid Market will support an accelerated growth plan. Following the investment, the approximate ownership split is the EQT Mid Market fund 40%, Epidemic Sound founders 40% and Creandum 20%.
Founded in 2009 and headquartered in Stockholm, Sweden, Epidemic Sound is a new breed of music company, offering high-quality music, primarily targeting video content production clients, in-store music and streaming platforms. Epidemic Sound works closely with talented composers and musicians across genres and geographies, whose music makes up the Company's cloud-based platform, containing over 30,000 tracks.
Epidemic Sound is seeing increased demand for quality soundtracks from a wide range of creators - from traditional TV broadcasters to professional online creators, such as YouTubers and those who create videos for Facebook. Through a subscription-based model, customers are given access to an extensive music library for usage in content production, with all rights included worldwide and irrespectively of the platform.
EQT Mid Market will support Epidemic Sound's growth journey through further investments in the product platform and continued international expansion with the mission to release Epidemic Sound's full growth-potential in both existing and new end-markets.
"EQT Mid Market has followed Epidemic Sound for years and it is truly one of Sweden's 'best kept secrets' with a unique value proposition to its customers in structurally high-growing market verticals. The success is built on a combination of two of Sweden's strongest export industries; music and tech. The Epidemic Sound founders have, in an impressively entrepreneurial way, combined these two into a very compelling product offering supported by a highly scalable business model. EQT's geographic reach and vast expertise within tech and digitalization will support Epidemic Sound's accelerated growth journey globally and we are excited to join forces with Oscar and the team", says Johan Dettel, Partner at EQT Partners and Investment Advisor to EQT Mid Market.
Oscar Höglund, CEO at Epidemic Sound, comments: "Over the past couple of years two things have happened. We have seen an explosion of online video and a huge increase in demand for quality soundtracks - both activity based music and more mainstream hit music. Teaming up with EQT Mid Market supercharges our business and thinking, and more importantly allows us to move towards our goal of making the music industry a better place to be, at a much faster rate."
White & Case served as legal advisor to EQT Mid Market, BCG as commercial consultant and KPMG as finance and tax advisor.
Partner at EQT Partners
Investment Advisor to EQT Mid Market
EQT Press Office
EQT is a leading alternative investments firm with approximately EUR 37 billion in raised capital across 24 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More info: www.eqtpartners.com
About Epidemic Sound
Epidemic Sound is a new breed of music company founded in 2009 with a mission to make the music industry a better place. It collaborates with musicians all over the world to produce quality music that soundtracks people's lives. Our music can be heard soundtracking everything from TV and film productions to online videos on YouTube or Facebook - consumers can also listen to tracks on streaming platforms such as Spotify. With music spanning over 180 genres and 30,000 tracks and all music available in prime time broadcast quality, the creative possibilities are endless.
Listen to our music at: www.epidemicsound.com
Creandum is a leading European venture capital firm, focusing on innovative and fast-growing technology companies, primarily in the tech sector. The Creandum funds have over €400M under management and are advised by the Creandum Advisory companies with offices in Stockholm, Berlin and San Francisco. Creandum have over the last decade invested in more than 60 companies including Spotify, Klarna, iZettle, Kry, Vivino and many others.
More info: www.creandum.com
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SOURCE EQT AB