Downtown's AVL Digital acquires distribution and services company FUGA

By Emmanuel Legrand

AVL Digital Group, a subsidiary of US independent music group Downtown Music Holdings, has acquired B2B music technology and services company FUGA. Terms of the transaction were not disclosed. 

  The Netherlands-based company will continue to operate as a stand-alone business within Downtown's portfolio of services companies which includes CD Baby, Soundrop, DashGo and AdRev. Downtown also owns rights management company Songtrust.

  In a statement, Downtown said that "as part of a broader enterprise, FUGA, its clients and partners will benefit from expanded resources, infrastructure and global scale to more quickly bring to market added services and unparalleled innovation for music industry rights holders."

A 'full-stack' music company

  Downtown also said that FUGA's acquisition was part of a strategy to "methodically" build out a “full-stack” global music company to cater for the needs of the independent sector, in particular independent artists. 

  FUGA's platform provides content management, work-flow and distribution services, delivering content to more than 260 different digital service providers globally. FUGA also provides full service marketing, promotion, monetisation and label services to the independent music sector. Over 500 different businesses, such as labels, artist platforms, distributors and other rights holders use FUGA’s technology and services to support their operations.

  “We could not be more enthusiastic about becoming part of the Downtown portfolio," said FUGA CEO and co-founder Pieter van Rijn, who will continue to run the operations. "This acquisition will give FUGA the backing to achieve our global ambitions in this space so we can continue serving the independent music community, developing our service offering and improving our technology."

A more equitable eco-sysem

  Commented AVL CEO Tracy Maddux: “Pieter and the team at FUGA have built an impressive business that offers clients an impeccably high level of service. Their robust technology, well-earned reputation for innovation on behalf of the clients they serve, and global perspective of the digital music industry are welcome additions to our existing set of capabilities and services."

  For Downtown Music Holdings CEO Justin Kalifowitz, the acquisition of FUGA, following that of AVL in March 2019, is "a natural next step for Downtown in developing businesses that support a more equitable and innovative music eco-system."