07:10 AM EDT, 04/29/2024 (MT Newswires) -- Blackstone (BX) is set to acquire the UK's Hipgnosis Song Fund for $1.57 billion in cash, the companies said Monday.

The boards of directors of Hipgnosis, whose assets include the catalogs of many famous artists, and of Blackstone subsidiary Lyra Bidco, said in a regulatory filing that they agreed to a $1.30 per share price that is 4% above the $1.25 price offered by rival Concord Chorus and 48.1% over the company's April 17 closing price.

Hipgnosis said in a regulatory filing "that the terms of the acquisition represent an attractive premium for Hipgnosis shareholders" over Concord's final offer.

The deal, expected to close in Q3, is conditional on shareholder approval and other customary conditions, the filing said.

Blackstone is a majority owner of Hipgnosis' investment adviser HSM and claims an option to buy the fund's 40,000 songs catalog should that relationship be severed. In arguing for the sale, Hipgnosis' board cited Blackstone's tendency "to build and grow the businesses in which it invests" and its "particularly strong focus on the media and entertainment sectors."

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