Although there were other interested competitors, the Universal Music Group says it has bought the Sanctuary Group, a London-based music management group representing Elton, among artists, for $205 million.
The purchase puts Universal into the artist management business for the first time. Key for Universal was acquisition of Sanctuary's merchandising and live agency businesses, Variety stated yesterday.
"The Sanctuary business will be a good strategic fit for us," Universal Music Group Chairman and Chief Executive Officer Doug Morris said. "We have a great opportunity to strengthen and advance Sanctuary's position as a significant player in artist management, agency and merchandising, as consumers' appetite for music grows worldwide."
Sanctuary chairman Robert Ayling said the deal would "allow the Sanctuary business to benefit from the already well-established relationships between Sanctuary and Universal and from a more supportive capital structure, which is in the future interests of artists and employees."
The transaction must be approved by competition authorities.