One Media iP Group PLC (AIM:OMIP) has acquired the licensor's income share of the Entertain Me music catalogue, which features over 15,000 songs.
Including tracks by artists such as Gloria Gaynor, Louis Armstrong and James Brown, the catalogue is set to instantly boost revenue and One Media’s portfolio value, the company announced on Tuesday.
“This acquisition not only gives us income exposure to new songs in our sweet spot of music nostalgia, it also allows us to strategically consolidate certain income streams,” chief executive Michael Infante said.
One Media dubbed it a “material acquisition”, adding the purchase had been funded through existing cash resources at an “advantageous earnings multiple”.
“[This] supports the company's strategy of owning and managing evergreen music rights that have a proven track record of delivering long-term, recurring income,” One Media said.
The catalogue’s tracks, which range from the 1940s to the 1970s, are available on Apple Music, Amazon Music and Spotify, the group added.