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3i Group to make 2.1x its money with TouchTunes sale

3i Group plc said Thursday it sold its stake in TouchTunes to Searchlight Capital. 3i said it would receive 38 million pounds (US$57 million) in proceeds. New York-based TouchTunes is a digital jukebox maker. With the sale, 3i said the deal represents an IRR of 22 percent and a 2.1x money multiple on its original investment of 24 million pounds ($40 million).


3i Group plc (“3i”), and funds managed by 3i, today announce the sale of their stake in TouchTunes (“the Company”), the largest in-venue interactive entertainment network in North America, to Searchlight Capital.
In sterling terms, the total proceeds to 3i Group and funds represent an IRR of 22% and a 2.1x money multiple on the original investment of £24 million ($40 million).
Proceeds to 3i Group from today’s transaction will be £38 million ($57 million), representing a 24% uplift against a value of £31 million at 31 March 2014.
3i, and funds managed by 3i, invested in TouchTunes in 2011 to support the Company’s growth strategy and international expansion, as well as help bolster its product and service offering. During this period TouchTunes has increased its network of digital jukeboxes by nearly 50% and developed several ancillary revenue streams.
The Company now has a presence in over 71,000 restaurant and bar establishments across North America and Europe. This impressive growth has been achieved through organic growth in North America and the important acquisition of Soundnet in 2014, which marked TouchTunes’ entry into the UK market.
Ken Hanau, Managing Partner, 3i North America, commented:
“TouchTunes has achieved significant growth over the past four years. The Company now has a valuable platform in the UK as well as a substantially increased presence in its core market of North America. We have enjoyed working with the TouchTunes management team and are confident that the Company will continue to develop under their leadership.”
Charles Goldstuck, Chairman and Chief Executive Officer of TouchTunes said:
“We have enjoyed tremendous success together over the last four years. Our association with 3i has helped propel TouchTunes into the global arena and I am thankful