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destra acquires profitable music and video group Rajon

  • 22 December, 2005 14:11

<p>MELBOURNE – 22 December, 2005 – destra Corporation Limited (ASX:DES) (destra) has completed its acquisition of The Rajon Music &amp; Video Group (Rajon), one of the largest independent record labels in Australia.</p>
<p>Rajon owns and controls a very successful catalogue of artists, which has an impressive track record including 32 gold records, six platinum records and 42 major industry awards. Artists include Melanie C (ex-Spice Girls), Tina Cousins, Daniel O’Donnell and Ronn Moss.</p>
<p>destra Media has experienced rapid growth throughout 2005 and ends the year with the purchase of Rajon whose financial strength allows destra to facilitate further investment in digital media. Rajon is a highly respected participant in the music industry and is represented on the Australian Record Industry Association (ARIA) board by Rajon’s COO, Ken Outch.</p>
<p>“The acquisition provides scale and profitability to our destra Media division and effectively doubles the size of destra in terms of annualised revenue and earnings," said Domenic Carosa, destra’s CEO. “Importantly, it forms one of the core planks of our media strategy - Music, Entertainment and Youth.”</p>
<p>“We anticipate substantial synergies are available through the collaborative participation by Rajon and destra in the growth areas of digital music and video, mobile phone content and music self publishing markets, leveraging the strength of destra Music, MP3.com.au and destra Mobile,” said Carl Olsen, destra’s Chairman.</p>
<p>Rajon is distributed by Sony BMG Music in Australia and supplies product to department stores, music &amp; DVD chains and independent music &amp; DVD retailers. Rajon has recently expanded the operation into New Zealand and Asia. Distribution is also handled by Sony BMG Music in both Asia and New Zealand. “We congratulate John Evans, Rajon and destra on their agreement. SONY BMG has business arrangements in place with both companies and, through today’s acquisition, we look forward to that relationship progressing. The continuing participation of John Evans and his senior team is also very welcome in destra’s local and international growth plans.” said Denis Handlin, Chairman &amp; CEO, SONY BMG Music Entertainment Australia &amp; NZ.</p>
<p>John Evans will remain as Chairman of Rajon and all of the existing senior management team will remain at the company to continue the successful development of the business. He has served the Australian record industry for 43 years, founding J&amp;B Records with Brian Nichols in the 1970s, which subsequently listed on the ASX. He also started Castle Communications in Australia and the U.K.</p>
<p>John Evans was elected to The ARIA Board and was re-elected to serve over 15 years. “The combination of Rajon’s traditional music marketing expertise, along with those of destra’s technology skills will provide greater opportunities and growth for our artists and licensors moving forward. We are focused on growing the business in Australia and internationally,” commented John Evans, Chairman of the Rajon Group.</p>
<p>The acquisition was secured utilising a debt funding facility of up to $3 million from St George Bank Corporate &amp; Business Banking.</p>
<p>ENDS</p>
<p>destra Corporation Limited
destra (ASX:DES) is a leading internet and e-commerce company delivering internet business and consumer entertainment solutions through its two arms – destra Media &amp; destra Business.</p>
<p>destra Media divisions include destra Music – facilitators of the online distribution of digital music; Musicpoint - a web-based service for radio stations providing automated online distribution of new releases; MP3.com.au – Australia’s number one digital music provider for independent and unsigned artists.</p>
<p>Business communications offerings are delivered through the following divisions – destra Business and TPP Internet. These divisions service the SME sector through mid tier to large corporations delivering on their needs in data connectivity, voice communications and all levels of hosting and domain name services.</p>
<p>Visit www.destra.com.</p>
<p>For further destra media information please contact:</p>
<p>Domenic Carosa
Chief Executive Officer
destra Corporation Limited (ASX: DES)
Tel: +61 (3) 8415 9111 or (0411) 19 69 79
Email: domenic.carosa@destra.com</p>

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