Music company Spotify is buying the Echo Nest to add more music curation tools.
Somerville, Mass.-based Echo Nest is a music intelligence company that provides information about music content and music fans. The company will remain headquartered in Somerville, with an office in San Francisco. The target has $26.5 million in venture capital backing from Commonwealth Capital Ventures, Matrix Partners and Norwest Venture Partners.
Stockholm-based Spotify is a music streaming service. The company expects to use the Echo Nest's music information and curation tools to add to its services.
Spotify has raised $538 million in funding since it was started in 2006. Investors include Accel Partners, Kleiner Perkins Caufield & Byers, Goldman Sachs, Horizons Ventures, Technology Crossover Ventures and more.
Skadden Arps Slate Meagher & Flom LLP provided legal advice to Spotify on the deal.
SFX Entertainment Inc. (Nasdaq: SFXE) has also made a few music technology deals - including the company's December purchase of ticketing company Paylogic, and deals for Arc90, a product design and development agency, Fame House, a music-focused digital marketing agency, and Tunezy, a commerce service for entertainment, in October.
In 2012, Beats Electronics LLC bought MOG Inc., a paid digital music subscription service.