Mood Media to Acquire Muzak for $345m
Based in Fort Mill, South Carolina, Muzak is a provider of a full range of brand enhancing products. Its top-tier background and foreground music, voice and digital offerings reach more than 100 million people every day.
Mood Media's acquisition of Muzak will create a global in-store media provider servicing over 470,000 commercial locations in over 39 countries. In the US, the combined business will serve over 200,000 national and 100,000 franchised locations.
The combined customer base will include more than 850 US and international brands in diverse market sectors that include retail (food, fashion, and cosmetics), leisure and hotels, oil and gas, telecommunications, financial institutions, and fast food.
Together Mood Media and Muzak will have an extensive music library that includes 1.7 million rights-included tracks and more than 30,000 original recordings, which means customers will benefit from greater product choice.
The combined company will have trailing last twelve months pro forma revenue of approximately $400m and trailing LTM pro forma EBITDA in excess of $100m. Over 60 percent of the combined company's revenue will be recurring subscription revenue, with a new contract life of three to five years.
Mood Media intends to maintain a significant presence in the Charlotte, North Carolina area, with its US headquarters in Fort Mill, South Carolina. It will finance the transaction with approximately $480m of debt, including the refinancing of Mood Media's existing debt.
The transaction is subject to receipt of all necessary approvals including the approval of the Toronto Stock Exchange.
Lorne Abony, CEO and chairman of Mood Media Corporation, said:â€This acquisition creates a new global leader with the geographic footprint, top-tier brand relationships and track record of innovation to compete and succeed in a dynamic marketplace. Over the past five years, Mood Media has transformed the in-store media industry by offering unparalleled innovation and convenience to our customers across the world.
â€œWe now have the opportunity to extend this legacy to a world-recognized brand and create a truly global leader with U.S. headquarters in the Charlotte area. We see attractive opportunities for profitable growth through cross-selling Mood Media's products to Muzak's existing customers, expanding into adjacent markets and adjusting Muzak's distribution system to our industry-leading internet-based technology.â€
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