Update: It's a done deal. Here is the press release. Koch will acquire Navarre's music distribution business for $6.5 million, which will be paid for by cash reserves. Indie distribution is at an interesting time. ADA is dominating. The new Koch should be very powerful. Fontana is growing and adding labels. Caroline is trying to find its way. Smaller distributors are chugging along.

Billboard.biz has reported that Koch Entertainment's parent company, Entertainment One, is planning to acquire Navarre Entertainment Media. The new company's market share will be about 2.7%.

A combined company would be the country's second largest distributor, behind ADA. Koch currently distributes Putumayo, Artemis, Shanachie, Passport, SST, Kinkysweet and of course the Koch family of labels. Navarre sells Pinnacle Records, Suburban Home, Valley Entertainment, Naked Music and ZTT Records.