INGrooves receives investment from Shamrock Capital Growth Fund II
Company Also Extends Distribution Relationship with Universal Music Group (UMG)
SAN FRANCISCO, CA…October 13, 2010- INgrooves, a global provider of digital distribution, marketing and promotion services to the audio, video & publishing communities via its ONE Digital platform, today announced that Shamrock Capital Growth Fund II (“Shamrock”), a leading private equity fund focused on media, entertainment and communications investing, has completed a significant growth capital investment in INgrooves. Financial terms were not disclosed.
This capital injection will allow INgrooves to expand into ancillary media verticals such as eBooks and make strategic acquisitions in the digital music industry. With the closing of the Shamrock investment, both Shamrock and UMG will be minority shareholders in the Company.
In addition, INgrooves also announced that it has extended the term of its distribution agreement with Universal Music Group (UMG), the world’s leading music company, for the the digital delivery of UMG’s North American catalogue to online and mobile retailers within that territory. UMG has been utilizing the ONE Digital platform to manage the distribution of some of its content since making a strategic investment in INgrooves in March 2008.
“Our new partnership with Shamrock will give us the financial flexibility to increase the functionality of the ONE Digital platform and make strategic acquisitions to expand our global footprint,” stated Robb McDaniels, Founder & CEO of INgrooves. “Moreover, we are honored by UMG’s continued validation of, and belief in, the ONE Digital platform. UMG’s knowledge and repertoire make us a better company and we are thrilled that our overall relationship has continued to flourish.”
“As more content is consumed digitally, INgrooves solves a critical need for content owners to market, promote and manage the distribution of their content economically and efficiently,” said Michael LaSalle, Vice President at Shamrock. “We believe that INgrooves has a strong management team, best-in-class technology and world-class client base. We are excited to partner with the INgrooves team to expand their footprint in music, publishing and video.”
Brian Stengel, Managing Director and Group Head of the Digital Media Practice at Waller Capital Partners acted as the exclusive financial advisor to INgrooves.
INgrooves is a leading provider of digital distribution, marketing and promotion services to the global music, video and book publishing communities via its ONE Digital platform. ONE Digital is a proprietary software platform that provides distribution and administration to large distributors, record labels and film production companies. INgrooves provides clients customized distribution, marketing, promotion, synch licensing and administrative support to help maximize the earnings potential of specific audio and video releases or catalogues. INscribe Digital, recently launched in July 2010, provides publishers large and small with an easy and transparent system to manage their digital business. For more information, visit www.ingrooves.com
About Shamrock Capital
Founded as the Disney-family investment vehicle thirty years ago, Shamrock Capital Growth Fund is a Los Angeles-based private equity firm investing on behalf of a diversified group of institutional limited partners focused solely on the media, entertainment, and communications industries. Shamrock makes both control and minority investments. Shamrock’s representative investments include RealD, MediaStorm, PRN, Harlem Globetrotters and Publishing Group of America. www.shamrock.com