Chrysalis PLC has acquired the First State Media Group business, which operates under the brands of S2 Songs and State One Music in seven countries and controls a catalog with over 45,000 music copyrights.

Those copyrights include Sheryl Crow's song catalog; the Dreamworks song portfolio (which includes John Denver's "Leaving on a Jetplane" and "Take Me Home Country Roads," as well as Jefferson Airplane's "Somebody To Love"); and the Wind-up catalog (which includes Evanescence's "Bring Me To Life").

Chrysalis paid £11 million (U.S. $16.5 million) for the First State Media Group operation, a joint venture owned by its management team and Colonial First State Global Asset Management, a unit of the Commonwealth Bank of Australia Ltd. Chrysalis has funded the acquisition through its existing loan facilities, which still has a further £22.4 million in availability for future acquisitions.

Since its inception, First State has completed transactions acquiring more than $150 million in music copyrights, which are owned by FS Media Works Fund 1 for a partnership of international institutional investors and pension funds.

In effect, Chrysalis is taking over management and administration of the copyrights previously managed by First State Media Group, with its contractual license rights over the Fund's assets running until Sept. 30, 2016, with a further three-year option.

As a result of the deal, the transaction entitles Chrysalis to approximately £2.7 million ($4 million) per year of NPS from the Fund's copyrights over a six-and-a-half year period, with most of those funds derived from an administration fee; and £0.5 million (U.S. $800,000) per year of NPS from FSMG's owned copyrights and other third party copyrights; and the right to advise the Fund in investing the remaining £6.7 million (U.S. $10 million) it has unavailable funds, for which Chrysalis would earn a fee.

It's "very significant that we now have access to a new group of investors to partner with in executing our strategy," Chrysalis chairman Chris Wright said in a statement. "The long term investment horizon of these institutions and pension funds is extremely well suited to music publishing assets, which have a long term life, and we look forward to developing a close long term relationship with them."

When Chrysalis' existing international operations takes over management of the FS Media Works assets, it will result in significant synergies, including a wider exploitation of the copyrights and a reduction in the overall cost base, generating substantial operating cash flows, gross income and NPS, according to the company.

The FS Media Works Fund 1 is scheduled to be unwound by Sept. 30, 2015, but with an option that could extends the fund's life until 2018, after which the assets could be liquidated. The announcement says that Chrysalis "would be well placed to acquire the assets outright at that time."