CPE News (12/21/2020) – Stingray Group Inc. (TSX: RAY.A; RAY.B) has sold the securities it held in the capital stock of San Francisco, California based AppDirect, Inc. to existing shareholders and investors for cash consideration of US $14,611,815.
Stingray Group did not disclose the percentage of stake it sold, at what valuation. Stingray was a seed investor in Montreal founded AppDirect.
AppDirect has raised US $465 million in total equity funding, most recently with the closing of a US $185 million round from Caisse de dépôt et placement du Québec (CDPQ) and existing investors in September 2020.
AppDirect investors include StarVest Partners, JP Morgan, Foundry Group, Mithril, and CDPQ.
Founded by Daniel Saks and Nicolas Desmarais in 2009, AppDirect, Inc. is a leading subscription based end-to-end cloud commerce platform for both monetizing and managing digital customer relationships.
AppDirect, Inc. operating two Canadian offices in Montreal and Calgary through AppDirect Canada.
Stingray announces Sale of Non-Core Investment in AppDirect for Proceeds of US$14.6M
MONTREAL, Dec. 21, 2020 — Stingray Group Inc. (TSX: RAY.A; RAY.B) a leading music, media and technology company, is pleased to announce the sale of the securities it held in the capital stock of San Francisco based AppDirect, Inc., a leading subscription based end-to-end cloud commerce platform for both monetizing and managing digital customer relationships.
Stingray is exceptionally proud to have been a seed investor in one of the most successful technology companies founded by Canadians, Daniel Saks and Nicolas Desmarais, in 2009. The sale in favour of existing shareholders and investors was completed pursuant to the terms and conditions of a stock transfer agreement and Stingray received cash consideration of US$14,611,815.
“This transaction demonstrates our continued commitment to reduce net debt and drive value for our shareholders,” said, Eric Boyko, President, Co-founder, and CEO of Stingray. “The sale of our non-core investment in AppDirect is an excellent opportunity for Stingray to reduce its net leverage and improve our financial flexibility to realize upon M&A opportunities.” “Nicolas and I are very grateful for the mentorship and early investment that Eric and Stingray provided to AppDirect,” said Dan Saks, Co-CEO of AppDirect, “It is a testament to the powerful investment ecosystem in Quebec.”
Montreal-based Stingray (TSX: RAY.A; RAY.B) is a leading music, media, and technology company with over 1,200 employees worldwide. Stingray is a premium provider of curated direct-to-consumer and B2B services, including audio television channels, more than 100 radio stations, SVOD content, 4K UHD television channels, karaoke products, digital signage, in-store music, and music apps, which have been downloaded over 150 million times. Stingray reaches 400 million subscribers (or users) in 160 countries. For more information: www.stingray.com
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