Publicly-listed Australian Internet and E-commerce company Destra Corporation has signaled its plans to expand into the digital music and mobile phone content markets with the purchase of Sydney's Raj
Publicly-listed Australian Internet and E-commerce company Destra Corporation has signaled its plans to expand into the digital music and mobile phone content markets with the purchase of Sydney's Rajon Music & Video Group.
The $3 million ($2.22 million) deal, which was effective last Friday (Nov. 25), includes the businesses Rajon Music and Rajon Vision (distributed in Australia and Asia by Sony Music), Rajon New Zealand and former Zomba Records Australia managing director Paul Paoliello's year old imprint BIG Records.
Following the purchase, Rajon chairman John Evans, a veteran of 43 years experience in the music business, and existing senior management will retain their respective posts.
Rajon Group formed July 2000 with the amalgamation of three primarily-budget and mid-price range labels Rajon Entertainment, Redx Entertainment and Startel Entertainment. It expanded into DVD in 2001 and claims a 2% share of the Australian and New Zealand music and DVD markets. According to Destra, it is on target to achieve earnings before interest and tax in the order of $1 million ($740,000) on revenues exceeding $20 million ($14.8 million) for the financial year ending June 30, 2006.
Destra chairman Carl Olsen said the Rajon acquisition “is indicative of our focus and aspiration to achieve scale in the Destra media division. Rajon's financial strength allows us to facilitate further investment in digital media within the destra corporate structure."
Melbourne-based Destra operates digital rights management for Web sites of such retailers as Leading Edge and Harvey Norman and media as ABC Radio. It also runs music download services at DestraMusic and MP3.com.au.
Destra, which has a licensing deal with Sony BMG Music Entertainment to sell downloads, today (Nov. 29) extended that deal to sell Sony BMG's music, video clips and master ring tone content to mobile phones.