Digital jukebox and in-bar entertainment provider TouchTunes will merge with Victory Acquisition (which trades on the NYSE Amex as VRY) for 33 million shares of Victory stock and a $40 million debt assumption.
The combined company will operate as TouchTunes and is expected to trade publicly on the NASDAQ or another stock exchange. According to Eric Watson, Chairman of Victory, “With up to $310 million in equity capital at closing, TouchTunes should be able to expand its market presence and accelerate its already significant technology lead and distribution channel advantage”.
TouchTunes Corporation provides services for innovative solutions to more than 38,000 bars, restaurants, retailers and other businesses in North America. The compant introduced the first digital downloading, pay-per-play commercial jukebox in 1998 and now plays approximately 700 million songs annually.
TouchTunes also recently introduced Barfly, as interactive television network designed to provide unique content and social networking, and PlayPorTT, a portable gaming system for restaurants.
Victory Acquisition Corp. is a specified purpose acquisition company (“SPAC”) formed by veteran investors and entrepreneurs Jonathan Ledecky and Eric Watson for the purpose of effecting a merger, capital stock exchange, asset acquisition or similar business combination with an entity that has an operating business.
Victory raised $330 million in an initial public offering in April 2007 and has 33 million shares outstanding along with 38 million warrants convertible into shares at an exercise price of $7.50. It currently has approximately $330 million in equity capital equal to approximately $10.00 per share.