By Dominic Chopping


A consortium of investors including private-equity company EQT have agreed to make a 1.52 billion euros ($1.64 billion) takeover bid for French digital music company Believe.

The consortium, which also includes investment firm TCV and Believe's founder and chief executive, said Monday that they will pay EUR15 a share and have already agreed to buy 71.92% of the company from certain existing shareholders.

Completion of the stake buy is expected to take place during the second quarter, and the consortium will then launch a tender offer for the remaining shares.

The offer represents a 21% premium to Believe's closing price on Friday of EUR12.40.

"Since being a public company, Believe has systematically outperformed its objectives, delivering its IPO plan two years ahead of schedule," Believe CEO Denis Ladegaillerie said in a statement. "However the strength of its operational performance has not been reflected in the share price evolution. Believe has a significant opportunity ahead to consolidate the independent music market."

Founded in 2005 and listed in 2021, Believe said it provides over 1.3 million independent artists with marketing, artist development, production, publishing, branding, live and financing solutions in over 50 countries and across more than 150 digital streaming providers, including Spotify, YouTube, Apple Music, and Amazon.

The consortium said Believe is benefiting from the rapid growth of paid streaming around the world, particularly in the fastest growing regions of Asia, Europe and emerging markets, where it has established leadership market positions.

With the deal, EQT said its EQT X fund is expected to be 30%-35% invested.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

02-12-24 0258ET