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New York
– The Orchard (NASD:  ORCD), a digital distributor of music and video, announced on Tuesday
that it has agreed to merge with parent company Dimensional Associates, in a
$13 million deal that will take the company private once again. Dimensional, a
unit of JDS Capital, was the primary owner of The Orchard between 2003 and
2007, when the company agreed to the reverse merger with Digital Music Group
Inc. (DMGI) that made it a publicly-traded company.

Dimensional currently holds
42% of The Orchard’s shares, and has bid $2.05 for the company’s outstanding
shares — representing a 21% premium over the company’s closing stock price on
Monday.

Under the terms of the merger agreement, The Orchard will now initiate
a 30-day period to determine if there are any other interested buyers.

Dimensional
also owns digital music subscription service eMusic.

 

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http://www.theorchard.com

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