UMG BUYS INGROOVES

Universal Music Group will acquire the independent music distribution and marketing company Ingrooves Music Group, which will be run as a standalone unit within UMG. CEO Bob Roback will continue to lead the company.

UMG, a minority investor in Ingrooves since 2006 when it struck a deal to handle Fontana’s digital releases, expects to close the deal before the end of the current quarter. UMG will form a strategic partnership between its Caroline International division and Ingrooves to create a platform for distribution, marketing and label and artist services.

“The continued success of the indie community is vital to the health of our industry, and through our investment in Ingrooves, we will strengthen the services we can offer to independent artists and entrepreneurs,” said Boyd Muir, Executive Vice President, Chief Financial Officer and President of Operations for UMG.

Ingrooves launched in 2002 to provide independent labels, artists and other content owners with tools that include analytics, rights management services and marketing solutions. Majority owner Shamrock Capital had been looking for a buyer of its shares for about a year.

“This acquisition by UMG represents the very best possible outcome for Ingrooves, our employees and our artist and label partners,” Roback said. “Our mission at Ingrooves has always been to provide our clients with the very best services and maximize the value of their music. With UMG, we are gaining the resources, global reach and technology to take those efforts to another level.”