Done Deal: ‘World Class’ Stereosonic Sold To US Company SFX

American electronic music company SFX Entertainment have confirmed the purchase of 100 percent of Totem OneLove Group, the Melbourne-based promoters behind the massive Stereosonic festival.

SFX are believed to have paid $75 million in the deal, which was officially made public when SFX listed on US stock exchange last month. Australian representatives of Totem OneLove are believed to have travelled to finalise the deal following SFX's initial public offering and a press release has now been issued to confirm the deal.

“The acquisition of Totem OneLove Group is an important step as we expand into the huge Southeast Asia market,” said 65-year-old SFX Chairman and CEO Robert Sillerman, who has steered the company into an aggressive pattern of acquisitions.

“The world-class professionalism of Totem gives us the proximity, experience and platform to continue our growth strategy. Richie McNeill and Dror Erez are respected and admired by their industry peers, deservedly so, for what they have created and built.”

Stereosonic has emerged as one of the biggest EDM, or 'EMC' – electronic music culture as SFX have begun calling it, festivals in Australia and have expanded the event to two days around the country. 280,000 tickets have been sold for this year's event, which will take place in November/December.

“Bob Sillerman and the SFX team have had a history of being innovative, breaking boundaries and never being afraid to push the envelope,” said McNeill, the Managing Director of Totem OneLove Group who was named the seventh most powerful person in the Australian music industry earlier this year.

“Our vision is global and the SFX team will help us achieve that and we will work to help SFX's other entities grow here in our territory, Australia and Asia.”

Totem Director Erez added, “As we are starting this new and exciting journey, we would like to thank Bob Sillerman and the entire SFX organization for making us feel like family from the very beginning, and for showing us the value in coming aboard this unique venture, with great passion and patience.”

Totem's deal is believed to be made up of $60 million in cash and $15 million in company stock, issued at the IPO. As part of the deal Totem have the option of selling their shares back at the initial $13 per share price after two years. Since 9 October, the share price has dropped to today's close of $9.03.