Monster TouchTunes jukebox network acquired by M&A guys
March 25, 2009 by Dave Haynes
In another sign that there’s still money out there, and a lot of interest in this space, one of the biggest but not all that well-known players in the digital out of home space got acquired yesterday in a share-based deal.
TouchTunes, which has digital jukeboxes in 38,000 sites around North America, announced Tuesday that it has merged with Victory Acquisition Corp. in a deal that includes 33 million shares of Victory stock, and the assumption of $40 million, ouch, in net debt.
The transaction needs regulatory approval, but assuming that, would see NY-based TouchTunes (its R&D offices and roots are in Montreal) trade on (probably) the Nasdaq exchange.
I’ve been to the TouchTunes offices and was very impressed by what they do, and a business model that makes collecting revenues dead-easy. They have an absolutely massive footprint to use for marketing to a target crowd, and the acquisition is intended to allow these guys to expand the offer to include interactive TV and broadband gaming.