vinyl group (ASX:VNL) has signed a binding letter of intent to acquire digital city guide company Concrete Playground Pty Ltd for $5 million in a deal consisting of $3.5 million in cash and $1.5 million in transfers.

The acquisition is expected to have an immediate positive financial impact, with Concrete Playground expected to contribute at least $1.5 million in EBITDA and more than $4 million in unaudited revenue in calendar year 2024. . Vinyl Group says the transaction will accelerate its timetable for becoming cash flow positive. 6 months.

Vinyl Group is Australia’s only ASX-listed music company. Its diverse portfolio includes social professional network Vampr, music credits database Jaxsta, music collectibles platform Serenade, and e-commerce division Vinyl.com. Its media division includes The Brag Media and Mediaweek.

Founded in 2009, Concrete Playground provides city guides across Sydney, Melbourne, Brisbane, Auckland and Wellington, with a curated selection of local events, experiences and trends.

By integrating Concrete Playground, Vinyl Group aims to expand its customer base, increase operational efficiency and diversify its commercial scope.

Under the agreement, Vinyl Group will acquire 100% of Concrete Playground’s issued capital. The $1.5 million stock will be issued as 12,676,413 common shares at $0.11833 each. The shares are subject to a 12-month escrow period. As part of the cash portion, $300,000 will be held in escrow for a period of 12 months following closing as security against potential claims under the stock sale agreement.

The transaction is expected to close by February 28, 2025 at the latest.

Upon completion, Concrete Playground founder and CEO Rich Fogarty will exit the business.

Record shares are trading 4.76% higher at 11 cents.