Private equity firm Coral Tree Partners has purchased the digital jukebox service provider AMI Entertainment Network from Gores Group.
(Bloomberg) — Private equity firm Coral Tree Partners has purchased the digital jukebox service provider AMI Entertainment Network from Gores Group.
Financial details of the transaction weren’t disclosed in a statement reviewed by Bloomberg News. AMI is valued in the transaction at up to $175 million, said a person familiar with the terms who asked not to be identified because they were private.
AMI was founded in 1909 as National Automatic Music Co. The business, based in Grand Rapids, Michigan, now operates as a digital network of jukebox and video systems, delivering music content to bars and restaurants. AMI services more than 30,000 jukebox systems throughout North America and the UK.
Gores Group, which acquired AMI in 2017, tried to merge it with TouchTunes Music Corp. in May but dropped its plans amid regulatory scrutiny, according to the Vending Times website.
Alec Gores said in the statement that he was confident AMI “has a bright future ahead with a strong partner in Coral Tree” and will continue to grow.
Coral Tree Partner Alan Resnikoff told Bloomberg News that, given the small circle of private equity firms based in Los Angeles, he learned AMI was on the market after simply reaching out to Gores Group.
“I’ve been following AMI for years to be honest,” Resnikoff said. “Fortunately, we were able to come up with a deal.”
Founded by Resnikoff and partner Will Wynperle, Coral Tree is a lower middle market private equity firm seeking to make investments in media, entertainment and communications. The deal for AMI is the firm’s third investment from its $470 million inaugural fund raised this year.
Coral Tree was advised by Kirkland & Ellis LLP. Gores was advised by Solomon Partners LP and Stephens Inc., with Foley Hoag LLP serving as legal counsel.
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