3i, an international investor focused on private equity, infrastructure and debt management, announced today that it has acquired a minority stake of newly issued shares in TouchTunes Interactive Networks, the world’s largest digital interactive out-of-home entertainment provider, for $40 million. Current majority shareholder VantagePoint Capital Partners will invest an additional $5 million. The total investment will support TouchTunes’ growth strategy and help bolster its product and service offering.
Founded in 1998, TouchTunes is the world’s largest digital interactive out-of-home entertainment network with 50,000 Digital Jukeboxes located in restaurant and bar establishments across North America. The company has recently unveiled its award-winning premier Digital Smart Jukebox, Virtuo, a first-of-its-kind system that breaks through the digital entertainment category with advanced music, technology and advertising capabilities.
TouchTunes holds an unmatched presence in the bar and restaurant arena, reaching and engaging the coveted, tech-savvy 21-35 age demographic. Headquartered in New York City, TouchTunes also has offices in Chicago and Montreal, Canada.
3i joins VantagePoint Capital Partners and the TouchTunes management team led by CEO Charles Goldstuck to help fuel the company’s growth strategy. TouchTunes remains focused on expanding the existing base of Digital Jukeboxes across North America and launching new products and services to broaden its in-venue entertainment capabilities. 3i’s investment and experience will enable the company to expand into Asia and Europe.
“3i is a natural partner for TouchTunes, especially with its broad global reach,” said Goldstuck. “I have known 3i’s North American leadership for a long time and have always been impressed with the firm’s global resources and experience in the Technology, Media & Telecom sector.”
Ken Hanau, Managing Partner of 3i North America, commented: “TouchTunes has experienced significant growth over the last few years, and we look forward to helping the management team to grow the business globally, expanding on its market-leading position. Employing our geographic footprint and global network, we are confident we can foster the company’s next phase of development.”
GCA Savvian Advisors acted as exclusive financial advisor in connection with this transaction.
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