INGrooves

Manatt was engaged by INgrooves, a leading provider of digital distribution, marketing, and promotion services to the independent music industry, to negotiate a strategic alliance with Universal Music Group (UMG). An agreement was reached on the relationship of the existing shareholders with Universal, the rights and remedies available to each under various scenarios, as well as optimization of option benefits. The INgrooves transaction involved providing equity to Universal. The terms and conditions of the transaction were not disclosed.  As a result of the deal, the company obtained a cash infusion to expand its operations and entered into a license/distribution agreement to allow digital distribution of Universal’s music through INgrooves’ system.  Utilizing INgrooves’ proprietary software platform, ONE Digital, Universal Music Group Distribution (UMGD) will benefit directly from seamless digital distribution to all of the major music services, while capitalizing on INgrooves’ comprehensive service offerings, which include digital retail sales and marketing, sales reporting, film and video distribution, and mobile. INgrooves was able to use the cash from the transaction to expand its operations and offer its services to a broad range of content owners.