US recurring revenue trading platform Pipe has acquired London-based entertainment supply-chain financier Purely Capital for an undisclosed sum.
The acquisition will help Pipe launch a media and entertainment division on its platform, which lets companies with recurring revenue streams raise up-front capital.
Pipe will use Purely Capital’s license fee payments technology to help producers, right owners and distributors receive immediate up-front revenue from their long-term licensing contracts.
An entertainment license holder, for example, will be able to receive a lump sum from investors to be repaid using the quarterly rights payments from streaming services such as Netflix, Amazon and Disney.
License holders could then use that capital injection to acquire new content without diluting equity or taking on debt, while investors are guaranteed a steady long-term revenue stream from repayments.
As part of the deal, Purely Capital CEO and founder Wayne Marc Godfrey will become the general manager of Pipe’s new Media and Entertainment Division. He is joined by co-founder Dan Abrams and the rest of the Purely team.
“Pipe has built the capital markets engine to connect recurring revenue-generating assets to institutional investors seeking yield,” said Harry Hurst, co-founder, and co-CEO, Pipe. “We are excited to announce the acquisition of one of the leading originators of these assets, Purely Capital.”
Godfrey added: “I am honoured to be joining the Pipe team to empower media and entertainment companies to seize control of their long-dated revenues, accelerate the growth of their business, and stretch the boundaries of their creativity.”
Purely Capital originated the purchases of over 250 media titles from its customers, with a combined value of $45m in revenues.
Last March it raised $150m from a number of banks and institutional lenders.