Southern Cross Broadcasting is set to swoop on Satellite Music Australia (SMA), acquiring the subscription music provider for almost $12 million.

Southern Cross believes the purchase has strong growth prospects, with a subscriber base already standing at 800 000.

Operating for nine years, SMA is the only producer of digital audio services in Australia and provides 36 channels of background music to supermarkets, department stores and shops.

It also provides customised music and advertising content to large retailers, include Woolworths, Coles, David Jones, Myer, Dymocks and Westfield.

As Southern Cross already owns Southern Cross Syndication, it is likely this acquisition is likely to make the company the biggest supplier of satellite content and distribution services in Australia.

Southern Cross Managing Director, Tony Bell, says SMA is an excellent business in its own right.

“It has long term contracts to supply 30 music channels to Foxtel and Austar, and a large stable of in store music customers.

“Satellite Music Australia would be able to grow, with the utilisation of Southern Cross’ sales force and market presence.”

Southern Cross has entered a heads of agreement to acquire the business, subject to the completion of due diligence.

It is expected the acquisition will be completed by 30 June and be earnings per share accretive.