The deal follows Topspin's decision last month to sell its core technology to Beats Music, which plans to use the intellectual property to launch its own platform allowing artists to market and sell merchandise on the Beats Music streaming service. Transom's purchase included the Topspin name, a customer list that includes 35,000 artists and the physical assets that includes the platform itself.
"Beats bought the technology, and we purchased everything else," said Joseph Bongiovi, President of BandMerch/CinderBlock.
"This is the perfect home for Topspin," Ian Rogers, Beats Music Chief Executive, wrote in a blog post. Rogers was CEO of Topspin before he left in January 2013 to head up Beats Music. "BandMerch and Cinder Block merged into one company last month to become a leader in the sports and entertainment merch space. Adding Topspin’s technology and artist relationships to that mix is the best home I could have envisioned for them."
BandMerch and Cinder Block are both music merchandising and licensing companies, offering a similar suite of services such as live event merchandise oversight, digital and brick-and-mortar retail distribution and marketing. Combined with Topspin, the three are projected to facilitate hundreds of thousands of e-commerce transactions a year, Bongiovi said.
BandMerch, Cinder Block and Topspin clients include The Who, Manchester United, Black Veil Brides, Asking Alexandria, Kid Rock, Rise Against, All Time Low, Coheed and Cambria, Death Cab for Cutie, Misfits, Postal Service, The National and Flogging Molly. Transom said service to Topspin clients will continue "in an uninterrupted fashion."
"We couldn’t imagine entrusting Topspin’s brand and reputation to a more synergistic partner,” Topspin CEO Jeremy Bellinghausen said in a statement.
Transom, based in southern California, has previously invested in two other music-related companies -- Blue Microphones and Summit Audio, both of which the private equity firm sold last year.