3i Group has sold its stake in North American interactive entertainment network TouchTunes to Searchlight Capital.
The total proceeds to 3i represent an internal rate of return of 22 percent and a 2.1x money multiple on the original investment of £24 million ($40 million).
Proceeds to 3i from the transaction will be £38 million ($57 million), representing a 24 percent uplift against a value of £31 million at 31 March 2014, 3i said in a statement.
3i invested in TouchTunes in 2011 to support the company’s growth strategy and international expansion. The group also helped to bolster its product and service offering. During the time 3i was invested in TouchTunes, the business increased its network of digital jukeboxes by nearly 50 percent and developed several ancillary revenue streams.
The company now has a presence in more than 71,000 restaurant and bars across North America and Europe. This 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.
“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,” Ken Hanau, managing partner, 3i North America, said in the statement.