(UPDATED) eMusic owners Dimensional Associates, the private equity arm of JDS Capital, has bought the part of indie music distributor The Orchard that it didn't already own for $2.05 a share. That puts the total value of The Orchard at about $12.77 million. Dimensional already owns about 42% of The Orchard and the deal has been talked about for months.
Dimensional had owned 100% of The Orchard until 2007 when the distributor merged with the publicly traded Digital Music Group. According to today's SEC filing, stockholders could also get a bonus if Dimensional sells 80% or more of The Orchard within 6 months. Analysts speculate that either Dimensional is buying back The Orchard to sell it or will combine it with eMusic to operate or put on the market. The deal is expected to close in Q3.
UPDATE: A company spokesperson correctly points out that the purchase is technically not yet complete. The Orchard's board has agreed to price but still have to go through 30 day go-shop period and stockholders' vote.