The San Francisco-based company will “significantly expand” Stingray's global presence.
Montreal-based Stingray Group is set to acquire music and media technology company TuneIn Holdings for US$175 million (C$245 million).
“This aligns perfectly with our strategy to meet listeners wherever they are – at home, in their cars or in retail locations.”
Stingray expects the acquisition of the San Francisco-based company to “significantly expand” its global digital audio presence and growth in streaming services. The company also expects to benefit from the inclusion of TuneIn's targeted advertising platform. Stingray will pay US$150 million (C$210 million) upfront, which will be financed through a term loan, and up to US$25 million (C$35 million) 12 months after closing.
The transaction value is based on TuneIn's projected sales of US$110 million (C$154 million) and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$30 million (C$42 million) for the twelve-month period ending December 31, 2025, according to Stingray. Subject to TuneIn shareholder approval and other conditions being met, the acquisition is expected to be completed by the end of the year. Following the acquisition, TuneIn will continue to operate under its existing brand.
According to Stingray, TuneIn delivers more than 100,000 radio stations, podcasts, music channels and audio entertainment to more than 75 million listeners worldwide each month. Its content is distributed across more than 200 platforms and connected devices, including more than 50 car audio systems in more than 100 countries.
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“We are especially excited to expand our presence in the automotive sector, where TuneIn and Stingray have established strong integrations with leading manufacturers,” Stingray President, Co-Founder and CEO Eric Boyko said in a statement. “This aligns perfectly with our strategy to meet listeners wherever they are – at home, in their cars or in retail locations.”
Founded in 2007, Stingray offers a variety of audio and video content through broadcast television, streaming and radio. Its business unit provides commerce solutions in music, in-store advertising, digital signage, and consumer analytics and feedback, and its advertising network delivers digital audio messages to more than 33,500 major retail locations. Stingray says the company has about 1,000 employees and reaches 540 million consumers in 160 countries.
Combining TuneIn's active listeners with Stingray's existing distribution “creates a global audio leader with significant scale,” Stingray said. The combined company's revenues and adjusted EBITDA are expected to exceed US$400 million (CAD$560 million).
Stingray announced its acquisition of TuneIn this week along with its second-quarter earnings report, which reported growth in revenue, net income and adjusted EBITDA. Investors reacted positively to the news and the gains on the Toronto Stock Exchange, with Stingray's share price at market open Wednesday morning up nearly 20 percent, from C$11.15 per share to C$13.15 per share as of this writing.
Image courtesy of Stingray.
