Nashville-based Concord Chorus announced plans to acquire Hipgnosis Songs Fund, a British music rights investment company, for approximately $1.4 billion. London-listed Hipgnosis has acquired the rights to songs by well-known artists such as the Red Hot Chili Peppers, Journey and Neil Young.

Founded in 2018 by Merck Mercuriadis, the former manager of Elton John and Beyoncé, Hipgnosis' goal was to take music rights to a mainstream asset class by using streaming, radio play and performance fees to generate revenue for investors. However, the fund has struggled to capitalise on its investments. Last year, the company launched a strategic review and enlisted the help of music rights expert Shot Tower. As a result, the valuation of the music portfolio was reduced by more than a quarter.

Concord, which is indirectly controlled by Alchemy Copyrights, is a buyer of music rights and companies. The firm said US PE group Apollo has committed to provide financing for the acquisition through debt and a minority stake in the acquiring entity. Concord's catalogue includes Pink Floyd, Cyndi Lauper and Phil Collins. It has invested more than $2.8 billion in more than 100 transactions since 2015.

The proposed offer to Hipgnosis investors is $1.16 per share in cash, a 32% premium to the closing price prior to the announcement of the transaction at current exchange rates.