Sony Music Entertainment has entered into a “worldwide talent development partnership” with producer/DJ Kygo (a.k.a. Kyrre Gørvell-Dahll) and his manager Myles Shear, it was announced Thursday. Under the strategic agreement, Sony Music, Kygo, and Shear are launching Palm Tree Records, a new label imprint focused on identifying and cultivating emerging artistry in dance and electronic music, according to the announcement.

The label is part of a broader strategy by Kygo and Shear (pictured above, right and left, respectively) to develop a full-service system for breaking new artists, which also includes their newly launched artist-management company.

“We are thrilled to be expanding our successful relationship with Kygo and Myles,” said Rob Stringer, CEO of Sony Music. “Kygo is one of the most forward thinking and exciting artists in music today, and Myles is among the most innovative, creative artist developers around. This feels like a natural extension of our partnership as we develop together the musical output of Palm Tree Records.”

Added Kygo: “I’ve always been very fond of working with talented, undiscovered artists in my own releases. It’s been an amazing process to watch these artists grow and now I’m able to help projects I love by offering a label and management service with an incredible team.”

“We couldn’t be more excited to be growing our relationship with Rob Stringer, and all the great people in the Sony Music family through this new partnership,” said Shear. “Kyrre and I wanted to create an outlet that would allow us to help break upcoming artists that we work with, as well as discover new talent that we believe in and want to develop. Palm Tree Records, together with our new management company, now gives us the perfect way to do that. As a manager, it’s a thrill to be realizing this vision with the partner who I’ve created everything with up to this point.”

Shear and Kyrre first started working together in 2013. “I reached out to Kygo on Facebook five years ago, and I can’t believe how far we’ve come,” Shear tells Variety. “Now, we’re taking things to the next step, and we’re going to be unstoppable. This platform is all about working with super-talented new artists.”

While the company is focusing on management and the label at the moment, Shear said he envisions it getting into television, headphones and content creation, among other areas.

“Kyrre and I can build an empire together, and this is an ‘open for business’ sign.”