The founders of indie label group [PIAS] have introduced they’re promoting the remaining shares they maintain within the firm to Universal Music Group (UMG), making the music big the agency’s majority shareholder.

In an announcement on Tuesday (Oct. 15), Kenny Gates mentioned he and his [PIAS] co-founder Michel Lambot have been promoting their shares to UMG, which acquired a 49% stake within the firm in 2022, to “allow us to offer a truly global distribution and services platform to the independent music community.”

Financial phrases weren’t revealed for the deal, which expands upon a strategic world partnership between the 2 firms that started in 2021. When UMG acquired the 49% stake in [PIAS] for an undisclosed sum the next 12 months, Gates and Lambot retained majority management of the corporate.

Ownership of [PIAS] now seems to be absolutely within the palms of UMG, though representatives of the European indie label group and UMG declined to increase upon the data contained in Tuesday’s press launch.

Details which were confirmed as a part of the brand new association embrace the merger of Virgin Music Group and [PIAS]’s providers division [Integral], which gives bodily and digital distribution providers to greater than 100 indie label companions together with ATO, Beggars Group and Secretly Group. 

The newly mixed groups will present “independent entrepreneurs with world class services and access to a bespoke, stand-alone international distribution network,” mentioned [PIAS]. Reps for the agency and UMG declined to remark when requested if the merger would end in any job losses.

The [PIAS] Label Group, which incorporates the indie labels Play It Again Sam, harmonia mundi, Spinefarm, Source and associate imprints similar to ATO, Heavenly, Mute and Transgressive, will stay fully autonomous, mentioned the corporate. Artists signed to or distributed by these labels embrace Nick Cave & The Bad Seeds, Kneecap, Sofiane Pamart, Sleep Token, Arlo Parks and Black Pumas.

“I am selling my shares not my soul,” mentioned Gates, who will stay CEO of [PIAS] and sit on the Virgin Music Group fundamental board and advisory group, in a press release. 

“Since agreeing [to] a strategic alliance with UMG in 2021 we have found them to be supportive and engaged partners who have added real value to our offering,” continued Gates, describing the choice to relinquish the founders’ remaining shareholdings in [PIAS] as a “pragmatic one.”

The firm’s current management group will proceed to steer day-to-day operations “and nothing will change culturally or commercially for our existing clients and partners,” mentioned Gates, who co-founded [PIAS] with Lambot in Brussels, Belgium, in 1983. 

Lambot mentioned that regardless of initially having “some concerns” about partnering with UMG in 2021, the expertise has surpassed his expectations.

“Our relationship to date has been fruitful, convivial and everything we hoped it would it be,” he mentioned. “This new phase, which will see us working even closer together promises to be an exciting new era for [PIAS], our staff, our partners and the artists we represent.”

“I’ve known Kenny and Michel for decades, beginning in the 80s when we were all signing bands from emerging scenes in Europe,” added Lucian Grainge, chairman/CEO of UMG, in a press release.

“Since that time, Kenny and Michel have built [PIAS] into a company that stands for authenticity and the best in independent music,” Grainge added. “And it is those qualities that are not only important to me personally but that also make [PIAS] a perfect fit for UMG’s entrepreneurial and creative culture.”

“We are delighted by all that’s been accomplished over the past three years together, and we look forward to working with Kenny and Michel and their entire team, including their family of artists and labels, to further build [PIAS]’s legacy,” mentioned UMG govt vp/CFO/president of operations Boyd Muir. “Their experience and insights have significantly helped to grow this dynamic area of our business. Completing the acquisition of [PIAS] Label Group and [Integral] reinforces our best-in-class label services operations and enhances our ability to support the independent artist and label community globally.”