Between September 2021 and February 2022, Swiss music company Utopia completed seven acquisitions.
Among the businesses she bought in this wave of acquisitions were a Liverpool-based music publisher and publishing administration company. Senteric Music GroupUS-based music industry directory ROST, And Absolute Label Servicesa UK-based distribution and service provider for independent artists and record labels.
In February, we learned that Utopia had decided to sell ROSTR belongs to its founders Mark Williamson and Adam Watson.
In March, Utopia sold Sentric at the Paris headquarters Believe in a transaction, Believe said it values Sentric at 47 million euros ($51 million).
Today, Utopia has divested again, with the original management team of Absolute Label Services taking over ownership of the business, just 18 months after their business was acquired by Utopia Music.
Absolute was acquired by Utopia in February 2022. The company says it has retained its long-standing original team, infrastructure and customer base under Utopia ownership.
Absolute’s original shareholders, Henry Semmence, Simon Wills (the company’s founders), Debs Cutting and Mark Dowling have now bought 100% of the company from Utopia.
Absolute Label Services is a UK based distribution and service provider for independent artists and record labels. Founded in 1998, Absolute’s current and recent clientele ranges from developing talents such as Jake Isaac, edbl and Au-Ra to established names such as Deep Purple, Beverly Knight and McFly.
Services offered by Absolute to customers include both digital and physical distribution, in addition to marketing, direct-to-consumer operations, administration and promotion via streaming and radio.
Absolute says it has “recently experienced significant growth”, with revenue up 25% year-over-year across its businesses – including its label services and neighboring rights operations.
The company’s projects slated for the rest of the year and into 2024 include Kula Shaker, Busted, James McVey (The Vamps), Kaiser Chiefs, Delta Goodrem and Tokio Myers, and emerging talents such as Barney Artist, edbl , Eljé and Frankie Stew and Harvey Gunn.
“Our primary focus over the past 28 years has been to ensure the success and growth of our artists and labels. We look forward to continuing our relationship with each of them and providing them with the dedicated support, resources and innovative solutions they deserve.
Henry Seed, Simon Wills, Debs Cutting and Mark Dowling
In a statement released on Monday (July 17), Semmence, Wills, Cutting and Dowling said, “Absolute’s management team is delighted to announce our decision to move forward independently. The decision to return full ownership of the business and preserve its vision and direction was driven by our unwavering commitment to continue to provide exceptional labeling services.
“Our primary focus over the past 28 years has been to ensure the success and growth of our artists and labels. We look forward to continuing our relationship with each of them and providing them with the dedicated support, resources and innovative solutions they deserve.
They added, “We are committed to exploring new collaborations, forging strategic partnerships and leveraging cutting-edge technologies to elevate our labeling services to even greater business growth and success. Our commitment to investment and expansion remains steadfast.
“Our incredible staff, brimming with talent and expertise, will remain central to our success, and we will continue to ensure they have the tools and knowledge to drive unparalleled results for our artists and labels.”
News of the Absolute founders’ takeover of their business from Utopia marks the third time this year that Utopia has offloaded a business it had previously acquired over the past 18 months.
Meanwhile, Utopia is also reportedly being for follow-up by US music technology company SourceAudio, with the latter company accusing the former of reneging on an agreed acquisition deal.
Elsewhere in Utopia, in November, the company laid off some of its global staff (which would have affected 20% of its workforce), and on January 31, the company’s founder, Mattias Hjelmstedt, announcement a major restructuring which he said represented “an exciting next step in Utopia’s journey”, and proved that his company was “optimizing for the future”.
The restructuring has seen Utopia’s longtime CEO, Markku Mäkeläinen, leave the companywhile Hjelmstedt assumed responsibility for the day-to-day running of the business.
At the time, Utopia was divided into two separate divisions: (i) “Music services” (including acquired businesses such as the trio of Senteric Music Group, Absolute Label Servicesand Clean, that he acquired in January 2022); and (ii) “Royalty Platform”under which Utopia’s internal technology platform rested.
Ancient Downtown executive Roberto Neri, who joined Utopia as COO in 2021was confirmed as the new CEO of Utopia’s “Music Services” division, but on April 3, just 62 days after that announcement, Neri confirmed he was leaving Utopia to become CEO of the new global publishing division of Believe.
Following today’s news, two companies that formed the “Music Services” division of Utopia, Absolute Label Services and Sentric, no longer belong to Utopia.
MBW heard rumors last March, Utopia was also considering a quick sale of two other of its UK-based acquisitions: Proper and Cinram Novum. (At the time, a Utopia spokesperson strongly denied that suggestion.)
In May, Utopia Music Enters a “long-term” contract of more than £100 million ($125 million) with DP World, a UAE-based multinational logistics company, to provide physical music warehousing and logistics in the UK United.
As part of this agreement, DP World is setting up a new warehouse in Bicester, UK, for Utopia’s distribution unit, Utopia Distribution Services (UDS).
Utopia said the stock will be moved from UDS’ warehouse in Aylesbury, UK (which it says it “inherited” from the UK warehouse, processing and distribution company Cinram Novum, of which Utopia assets acquired in 2022.)
Last week, MBW listened in to and reported on an interview with Utopia founder Mattias Hjelmstedt on the Dealmakers podcast with Alejandro Cremades, where he dropped some clues about what’s been happening with the company recently.
Other companies acquired by Utopia include, in October 2022, a Nashville-based financial services company, financial lyrical and in September 2022 Utopia bought supported by Quincy Jones emotional data enrichment company Musimap.
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