AIBiotics Signs Letter of Intent to Acquire DigiTrax Entertainment
Deal News | Jan 29, 2025 | Globenewswire
AIBiotics, a subsidiary of Mycotopia Therapies, has announced a significant move in the AI and music industries by signing a Letter of Intent to acquire DigiTrax Entertainment for $40 million. This prospective acquisition includes DigiTrax’s pioneering music AI technology, including seven U.S. patents, a $9 million-valued music catalog, and various licensing agreements with top publishers. DigiTrax, renowned for its AI-driven music solutions that enhance creativity and innovation, operates under multiple divisions including AI music innovation and interactive digital media. The transaction will see DigiTrax become a subsidiary of AIBiotics, and is expected to close by February 2025 contingent on definitive agreements and due diligence. DigiTrax CEO Joseph Vangieri will continue his role and join the AIBiotics board as part of the deal. AIBiotics sees this acquisition as a strategic enhancement of its AI portfolio, aiming to push generative AI beyond conventional machine learning methodologies, thus fostering innovation within the music industry.
Sectors
- Artificial Intelligence
- Music Technology
- Mergers and Acquisitions
Geography
- United States – Both AIBiotics (through its parent company Ehave) and DigiTrax Entertainment are operating within the U.S. market, as indicated by their business descriptions and patent locations.
Industry
- Artificial Intelligence – The article discusses the acquisition of DigiTrax, a company that focuses heavily on AI-driven technologies, specifically in music innovation.
- Music Technology – DigiTrax operates within the music technology sector, utilizing AI to revolutionize music creation and experience.
- Mergers and Acquisitions – The article primarily revolves around the acquisition deal between AIBiotics and DigiTrax.
Financials
- $40 Million – The proposed acquisition price for DigiTrax by AIBiotics.
- $9 Million – Valuation of DigiTrax's music catalog included in the acquisition.
- $32 Million – DigiTrax's valuation from its last funding round.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| AIBiotics | Bidding Company/Buyer | Company | A subsidiary of Mycotopia Therapies, specializing in AI-based solutions, it is acquiring DigiTrax Entertainment. |
| DigiTrax Entertainment | Target Company | Company | A music technology company utilizing AI to innovate the music industry, to be acquired by AIBiotics. |
| Mycotopia Therapies Inc. | Parent Company | Company | The parent company of AIBiotics, involved in the acquisition of DigiTrax. |
| Joseph Vangieri | CEO of DigiTrax | Person | He will retain his CEO position at DigiTrax and join the AIBiotics board of directors post-acquisition. |
| Ben Kaplan | CEO of AIBiotics | Person | He is overseeing the acquisition to expand AIBiotics' AI capabilities. |
| Ehave | Parent Company of AIBiotics | Company | The parent company of AIBiotics, operates within the health technology sector. |