Digital music distributor The Orchard announced an agreement to take the company private. Private equity group Dimensional Associates, which already controls 53 percent of the company's voting rights, has agreed to buy the remaining shares for USD 2.05 each, equal to a 24 percent premium on the share price the day before the announcement. The Orchard has secured an agreement for a 30-day period from 14 April when it can look for alternative buyers. The company hired Craig-Hallum Capital Group to solicit potential offers. Dimensional agreed to an extra payment if it sells 80 percent or more of The Orchard within six months of closing the deal. Pending shareholder approval, the deal is expected to close in the third quarter. Dimensional Associates was the primary owner of The Orchard from 2003 until its reverse merger with DMGI in November 2007. Dimensional Associates is also the owner of digital music service eMusic.
