For a while now, Counselor has been riffing that the growing demand for branded merchandise in the music industry represents a potentially significant opportunity for savvy promotional products distributors.

It seems Custom Ink thinks so, too.

Marc Katz, co-founder/CEO, Custom Ink

The Virginia-headquartered company, which specializes in ecommerce sales of custom-printed apparel and other items, has acquired Sidestep – a website and mobile app devoted to selling concert merchandise. Custom Ink made the acquisition through its subsidiary Represent, a Los Angeles-based company that specializes in partnering with celebrity influencers and others on branded merchandise initiatives. Terms of the deal were not released.

With Sidestep, musical artists can sell swag to fans before, during and after live events. It’s a convenience service, enabling concert attendees to get their hands on merchandise without having to wait in the long lines that often characterize merch tables and kiosks at such happenings. According to a statement, Sidestep will sync with Represent’s digital marketing platform, enabling artist-clients to design, market, print and distribute customized merchandise.

The Washington Business Journal reported that Eric Jones, CEO and founder of Sidestep, is becoming Represent’s head of music. Jones will direct Represent’s operations for musicians and music-related events. Launched in 2014, Sidestep has worked with musical artists that include Beyoncé, Guns N’ Roses, Panic! At the Disco, Fall Out Boy and Adele. Three years ago, Beyoncé invested in Sidestep.

Beyoncé invested in Sidestep in 2016. 

The acquisition of Sidestep comes after Custom Ink gained new investors through a recapitalization in April. Custom Ink reportedly generates about $400 million in annual revenue. The company is worth an estimated $500 million.

Sales of branded merchandise promoting musical artists are on the rise. The Licensing Industry Merchandisers’ Association reports that sales of music merchandise tallied $3.1 billion in 2016 – a 10% increase over the prior year. Furthermore, in the previous two years, the volume of branded music merchandise available for consumer purchase has tripled, according to Edited, a company that specializes in retail analytics.

Recent significant acquisitions in the music swag world include The Thread Shop, Sony Music’s merchandising division, buying the music merch division of New York City-based The Araca Group over the summer.

Sony’s acquisition occurred only about a half-year after its competitor Universal Music Group bought Los Angeles-based merchandiser Epic Rights. Last year, Warner Music Group spent about $180 million to purchase EMP, a Germany-based retailer of music and entertainment swag.