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The
terms of the deal were not disclosed. New Mountain Capital,
which manages more than $45 billion in assets, will acquire BMI
from its shareholders, the private equity firm said.
Reuters was first to report in July that BMI was exploring
options including a sale after it ditched its non-profit model.
New Mountain said it has set aside additional capital to fund
growth investments, new initiatives and technology upgrades to
help BMI improve its offerings for songwriters, composers and
publishers.
As part of the deal, CapitalG will pick up a passive minority
stake in BMI.
After the deal closes, BMI's current shareholders will also set
aside $100 million of the proceeds from the sale for its
distribution partners. The payout will be based on performance
levels over a set period of time, BMI said.
The transaction is expected to close by end of the first quarter
of 2024.
Created in 1939, BMI represents the public performance rights in
more than 20 million musical works created and owned by more
than 1.3 million songwriters, composers, and music publishers.
The songs are licensed to digital streaming services, radio and
television stations and other music users.
BMI reported revenue of about $1.57 billion for the fiscal year
that ended on June 30, 2022, and paid out about $1.47 billion to
its songwriters, composers and publishers, according to its last
annual report.
Goldman Sachs served as financial advisor to BMI and Fried,
Frank, Harris, Shriver & Jacobson was the legal advisor. Moelis
& Co and Simpson Thacher & Bartlett advised New Mountain.
(Reporting by Priyamvada C in Bengaluru; Editing by Arun Koyyur)
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