Downtown was founded in 2007 as a music publishing company but has since expanded into a broader array of services for artists, including helping them make, distribute and market their music, as well as collect royalties. The company specializes in independent artists, those not signed to a major record label. 

After years of expansion fueled by streaming, major music companies are grappling with a slowdown in growth and are looking at acquisitions to help. The major record labels are investing more in companies that provide lower-cost distribution services because many artists, especially those in emerging markets, are opting for those outlets.

“It’s an exciting time for Virgin as we continue to build a next-generation music company for independent artists and labels,” Nat Pastor, co-chief executive officer of Virgin Music Group, said in a statement announcing the deal.

Downtown works with over 5,000 businesses and four million creators in 145 countries. Its businesses include FUGA, which helps musicians distribute their work on streaming services like Spotify, Apple Music and YouTube.

Universal, one of the largest music companies in the world, is home to big stars including Billie Eilish, Taylor Swift and Harry Styles. Goldman Sachs Group Inc. advised Downtown on the sale.