Digital services company 7digital has completed its planned acquisition of top competitor 24-7 from MediaMarktSaturn (MMS), Europe's biggest electronics and entertainment retailer. In turn, 7digital will take over the day-to-day operations of MMS' digital music service Juke, which has been run by 24-7, plus MMS now becomes 7digital's biggest individual shareholder.
London-based 7digital agreed to pay £2.2 million ($2.45 million) in stock and cash, with an initial cash payment of £0.9 ($1 million) in respect to the funds held on 24-7's balance sheet. The transaction is expected to add approximately £5 million ($5.57 million) to 7digital's revenues in 2017 and more than £8 million ($8.9 million) in 2018. 7digital expects to double its licensing revenues with the new business it will be doing with its 24-7 contracts, including Danish telco TDC and Juke, based in Germany.