CMS advises Merlin on acquisition of Curve Royalty Systems from Universal Music Group
CMS has advised Merlin, the digital music licensing and membership organisation for independent labels, distributors and rightsholders, on its acquisition of Curve Royalty Systems (Curve) from Universal Music Group and its subsidiary Virgin Music Group. Merlin is making the acquisition alongside Jamen Capital.
Curve is a royalty processing platform used by thousands of record labels, distributors and publishers across the recorded music and publishing sectors. The transaction paves the way for Curve to operate as an independent business once again, with President Richard Leach continuing to lead the business as its standalone CEO and the existing management and day-to-day teams remaining in place.
The acquisition follows a requirement by the European Commission that Universal Music Group sell Curve to an independent buyer as part of the regulatory approval process for Universal Music Group's USD 775m purchase of Downtown Music Holdings, which was cleared in February 2026.
Under the terms of the deal, Jamen Capital and Merlin will operate as strategic partners with complementary roles in Curve's development, with Jamen providing long-term financial backing.
The transaction remains subject to final European Commission approval before closing.
Paul Guite, Partner and Co-Head of the Media Practice at CMS, commented: “We’re delighted to have advised Merlin on this important acquisition. Curve is a vital piece of infrastructure for the independent music sector, and this transaction ensures it will continue to serve its clients as a truly independent platform. It was a pleasure to work with the Merlin team on a deal that underscores the organisation's commitment to empowering independent rightsholders.”
Charlie Lexton, CEO of Merlin, commented: “We’re grateful to Paul Guite and the CMS team for their excellent guidance and support throughout this transaction. Their understanding of the music industry and commitment to achieving the best outcome for Merlin were invaluable in helping us navigate a complex process and secure Curve's future as an independent platform.”
The CMS team was led by Paul Guite, with support from Lauren Wood and Ard Babatinca (Corporate), John Enser and Eliza Cohen (Commercial).
CMS has one of the largest top-tier media and sport practices of any law firm in the UK, with more than 100 specialist lawyers forming part of a 300-strong Technology, Media and Telecommunications team. The practice provides full-service legal advice across M&A, litigation, regulatory and commercial matters.
