Virgin Music Group, the global independent music arm of Universal Music Group, announced today that it has signed a definitive agreement to acquire Downtown Music Holdings LLC (Downtown) for US$775 million (approximately €737 million) in cash.
The acquisition is subject to regulatory approval and is expected to be completed in the second half of 2025.
JT Myers, co-chief executive of Virgin Music Group, said: “Justin Kalifowitz, Andrew Bergman and Pieter Van Rijn have built Downtown Music into one of the most diverse and respected operators in the world.”
“This merger allows us to expand on Downtown’s legacy and provide the independent music community with a vibrant and innovative global infrastructure in terms of service delivery and geographic footprint, and we look forward to working with the Downtown team to serve independent entrepreneurs, artists and Creators have a broader portfolio of services.
Downtown is a “pure” services company spanning recorded music, publishing and other areas. It no longer holds the rights to the collection since it was sold to Concord three and a half years ago for about $400 million.
“On behalf of Andrew, Pieter and myself, Downtown is excited to join forces with Virgin Music,” said Justin Kalifowitz, founder of Downtown Music Holdings.
“This is a tremendous recognition of the importance and vitality of independent music and the value our company brings to our clients every day. Downtown was founded on the belief that artists and entrepreneurs everywhere, at every stage, have the right to access the same tools and opportunities to Achieve success. We are confident that working with Nat, JT and the entire Virgin Music team, the breadth and high standard of service that Downtown provides to its clients will be enhanced.
Nat Pastor, co-chief executive of Virgin Music Group, said: “This is an exciting time for Virgin as we continue to build the next generation music company for independent artists and labels. Acquisitions; we also make acquisitions. This is an investment in the global independent music ecosystem and a commitment to providing current and future creators and entrepreneurs with the world-class support, services and capabilities they need at any stage of their careers.
As one of the leading service providers to the global music industry, Downtown’s technology and service offerings support creators and businesses in music creation, distribution, publishing, marketing, royalty collection, financing, accounting and payment services.
Originally founded in 2007 as a music publishing company, Downtown now has more than 20 offices on six continents.
The company’s core segments include artist and label services, distribution, royalties and financial services, and music publishing.
Its business portfolio includes FUGA, Downtown Artist & Label Services, Curve Royalties, CD Baby, Downtown Music Publishing and Songtrust.
Downtown serves more than 5,000 enterprise customers and more than 4 million creators in 145 countries. The downtown client recently received nearly 150 nominations at the upcoming 2025 Grammy Awards.
Virgin Music Group and Downtown Music will continue to operate independently pending customary regulatory approvals, and the merger will occur upon completion of the transaction.
Downtown Music was advised on the transaction by Goldman Sachs & Co. LLC and Skadden, Arps, Slate, Meagher & Flom LLP. Virgin Music Group is advised by Kirkland & Ellis LLP, PricewaterhouseCoopers and Freshfields Bruckhaus Deringer.global music business
