Swiss music fintech deal will lead to 100 Liverpool jobs
BGF has completed a successful exit of Liverpool-based Sentric as the music publisher becomes the foundation of Swiss music fintech company, Utopia Music’s new Royalty Management Services business.
As part of the deal, a new hub will be set up in Liverpool which will hire 100 music engineers during the course of the year.
Founded in 2006, Sentric disrupted traditional music publishing and has since empowered more than 200,000 artists and songwriters to collect the royalties globally from a single, online platform in more than 200 territories.
Growth capital investor BGF backed Sentric in 2017 with a £3m investment, subsequently investing £5.5 million follow-on, to underpin the business’s global expansion and continued investment in its people and technology platform.
This allowed Sentric to make several strategic acquisitions and establish itself in more music markets than any of its competitors. During BGF’s investment period, revenue has grown more than fivefold, artist numbers have trebled, and profitability has grown significantly, creating exceptional returns for all shareholders.
Sentric CEO, Chris Meehan, will take the role of vice president at the newly formed Royalty Management Services business, and will continue to service Sentric’s existing customer base as part of Utopia.
The business will help creators more accurately allocate revenues by super-charging Sentric and its RightsApp platform with cutting edge tech provided by the Utopia platform. This will also allow Utopia Music to set up an engineering hub in Liverpool and hire 100 new engineers over the course of 2022.
Chris Meehan said: “Technology has presented challenges and opportunities in equal measure for the music publishing industry. As a team, we have been uniquely equipped to address both. BGF recognised the opportunity and has been the perfect partner to support our growth to date with the funding and expertise we needed, while ultimately leaving us in control of the business.
“Sentric and Utopia have the same long term vision for the music industry. Both companies have the same passion for unlocking the true value of music, and helping creators reach their full potential. By joining Utopia in the global roll-out of our services, we will reach our goal faster as a unified front, providing more value to both new and existing clients.”
Neil Inskip, head of BGF in the North West, said: “Sentric is one of the best examples of businesses in our region to be genuinely driving disruption while also using tech for good. It’s been a pleasure to support Chris and his team over the past five years and play a part in their success.
“They’ve built a world leading proposition and team, which is ultimately what has led to Utopia’s interest in the business. We’re thrilled to announce a superb exit for BGF and look forward to seeing Sentric’s success with Utopia.”
Roberto Neri, chief operating officer at Utopia Music, said: “I am very excited to welcome the very well respected Sentric team. Led by Chris, this business unit will be adding additional value to our already comprehensive and global consumption database, delivering further transparency and faster royalty payouts to songwriters, publishers and collection societies for compositions and performers and labels for neighbouring rights.
“Importantly, this unit will generate employment in the region, something we are passionate about as Utopia continues to grow and recruit the best talent from around the world.”
Shareholder advisors: Brabners (legal) – Mark Rathbone and Daniel Hayhurst. Langtons (CF) – Andy McCall.
Andrew Phillips and Ben Collins of DLA Piper advised Utopia Music.
