News | BMG | Berlin/Los Angeles, 09/13/2011

BMG Acquires Bug Music

BMG keeps growing and growing: the music rights company yesterday is acquiring Bug Music, one of the world’s leading independent music publishers. Yesterday, BMG and Spectrum Equity Investors announced an agreement under which BMG will acquire Bug Holdings, Inc. and its subsidiary Bug Music, Inc., which are currently controlled by Spectrum and Crossroads Media, Inc.

Founded in 1975 and headquartered in Los Angeles, Bug Music currently owns and/or manages the copyrights of such evergreen classics and contemporary hits as "Fever,” "What a Wonderful World,” "I Walk the Line,” "Summer in the City,” "Who Are You?,” "Under the Boardwalk" and "The Passenger."

The list of songwriters signed with Bug Music, and soon to have their musical home at BMG, is no less illustrious: Bug Music's clients include the estates of musical legends Johnny Cash, Willie Dixon, Muddy Waters, Woody Guthrie, Del Shannon and Stevie Ray Vaughan, as well as contemporary icons such as Iggy Pop, Kings of Leon, Ryan Adams, Wilco and The National. Financial terms of the transaction, which is expected to close by October, were not disclosed.

"With the acquisition of Bug Music and its vast collection of evergreen and contemporary compositions, BMG further establishes itself as a leading music rights management company," said Hartwig Masuch, CEO of BMG Rights Management at the announcement of the deal." We look forward to working with Bug Music's exceptional roster of artists and songwriters.“ Jim Quagliaroli, Managing Director of Spectrum, added: “BMG is a true leader in the industry and we have every confidence Bug Music’s artists and assets will be in the right hands and continue on a strong growth path with BMG.”

Tom McGrath, Managing Director of Crossroads, added: "BMG represents the next generation of music publishers who can marshal global resources to develop new writers, showcase the works of established writers and nurture the legacy of Bug's many long term clients and historic catalogs."

According to press reports, the repertoire comprises 250,000 songs.

Bug currently has a head office in Los Angeles, as well as offices in Nashville, New York, London and Munich. The company was founded by Dan Bourgoise, a Detroit native whose passion for music and the music industry drove him to L.A. in the early 1970s. During an exciting time in the Los Angeles music scene, Dan had access to the hottest clubs, managers, reviewers, artists, record companies and hardcore music fans. From the beginning, Bug strove to build lasting relationships with its artists, putting the artist and customer’s interests first. Today, the company has 75 employees.