Australian music and digital media Destra Corporation said today (Nov. 27) it is entering into an agreement to acquire Central Station Records (CSR) and MRA Entertainment from Home Leisure Ltd for A$1
Australian music and digital media Destra Corporation said today (Nov. 27) it is entering into an agreement to acquire Central Station Records (CSR) and MRA Entertainment from Home Leisure Ltd for A$14 million ($10.6 million).
Sydney-based CSR is a 30-year old dance label, which began as a network of stores importing U.S. and European dance tracks. Its current artist roster includes Dannii Minogue, Roger Sanchez, Freeform Five and Infernal.
Queensland-based MRA Entertainment has 3,500 music CD titles and a 1,000-title DVD catalog with a focus on children's entertainment, TV series and extreme sports. The companies jointly generate about A$3 million ($2.28 million) in sales each year.
Destra's Melbourne-based CEO Domenic Carosa says, "We intend to invest in the digital opportunities offered by CSR's world-class brands and artists including; music video streaming, paid music downloads, merchandise and online advertising opportunities."
He also wants to expand CSR's in-house brands such as Wild, Fuzzy and Skitz Miz, which already have their own spin-off dance compilation CDs, TV shows, radio programs and dance music festivals.
The move should work, says Colin Daniels, managing director of rival dance and electronica label Vicious.
"Central Station has a successful track record for bringing international dance music to Australia, and they have built a solid brand for the styles of dance music they promote," says Melbourne-based Daniels. "It suits digital companies to be involved in dance music. Its brand driven and has a tech savvy demographic."
MRA's licensed DVD and CD content offer lucrative opportunities for online distribution, Carosa added.
Destra launched the first local download site MP3.com.au in 1999. It has since widened its multi-media interests to encompass six divisions, with revenues of A$32.9 million ($25 million) this financial year. Sales are forecast at A$50 million ($38 million) for the 2006/7 year, according to Carosa.
In the last 12 months, Destra has spent A$44 million ($33.4 million) on acquiring content companies.
In accountant Deloitte's Fast 50 companies list this year, Destra ranked 27th among the fastest growing technology firms in Australia.