SFX Entertainment is planning to add Australian dance music festival Stereosonic to their portfolio through acquiring Totem.
Robert F.X. Sillerman is set to take on the Aussie market with the Initial Public Offering being published indicating the company is intending to finalise a 100% take over.
"We have entered into an asset contribution agreement with Totem, under which we have agreed to pay AUD$75.0 million, consisting of AUD$60.0 million (or $55.3 million) in cash and AUD$15.0 million (or $13.8 million) in shares of our common stock at the price to the public in this offering, to acquire 100% of Totem. Under the terms of the agreement, we were obligated to pay an AUD$5.0 million (or $4.8 million as of May 22, 2013) deposit, which we funded on May 22, 2013."
With Stereosonic's festival turning into a 2 day affair and Totem declaring this years line up to be the “the greatest EDM line-up Australia has ever seen” that includes “headline acts that have never before shared the stage”, it looks like all will be set for a taste of American dance music influence this busy and exciting festival season.
So what else is SFX machine planning on acquiring in their global take over spree? According to the report
"-We intend to use $8.0 million to close the acquisition of 60% of the ownership interests in i-Motion."
"- We intend to use $17.5 million to close the acquisition of 70% of the ownership interests in Made.(company behind Electric Zoo)"
"- We intend to use the balance to fund working capital, capital expenditures and other general corporate purposes, which may include other acquisitions of complementary businesses."
These assets will contribute to their already bustling family of recent purchases with Live Nation recently buying a stake in North America's largest dance music festival Electric Daisy Carnival, Cream Fields in the UK and a surety of the promised 'one billion spend into EDM' as of June last year.