Shamrock Capital Growth Fund II Invests in INgrooves
Universal Music Group Expands Distribution Relationship with INgrooves
SAN FRANCISCO, Oct. 14, 2010- INgrooves, a global provider of digital distribution, marketing and promotion services to the audio, video and publishing communities via its ONE Digital platform, has announced that Shamrock Capital Growth Fund II (“Shamrock”), a leading private equity fund focused solely on media, entertainment and communications investing, has completed a significant growth capital investment in INgrooves. In addition, in connection with this transaction, Universal Music Group (“UMG”), the world’s leading music company, has expanded its distribution relationship with INgrooves to include UMG’s entire North American catalogue. This expanded relationship with UMG covers delivery to all online and mobile retailers in North America.
“We’re excited about our new partnership with Shamrock, which will give us the financial flexibility to increase the functionality of the ONE Digital platform and make strategic acquisitions to expand our global footprint,” commented Robb McDaniels, Chief Executive Officer and President of INgrooves. “Furthermore, INgrooves is 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.”
UMG’s expansion with INgrooves adds its frontline content to the ONE Digital platform, including wholly owned labels Interscope, Geffen, A&M, Island Def Jam, Universal Motown Republic Group, Universal Music Latin Entertainment, Decca Label Group, Universal Music Enterprises (UMe) and Universal Music Group Nashville, among others. UMG has been using the ONE Digital platform to manage the distribution of its distributed label content to online and mobile retailers. With the closing of the Shamrock investment, both Shamrock and UMG will be minority shareholders in the Company.
“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 Robb, David and the INgrooves team to expand their footprint in music, publishing and video.”
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 Growth Fund
Historically known as the Disney-family investment vehicle for over thirty years, 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
About Universal Music Group Distribution
Universal Music Group Distribution has been the industry market share leader for the past ten years and consists of four major divisions: Universal Music Distribution (UMD), Fontana, Vivendi Entertainment (VE), and UMGD Digital. UMD handles the distribution and sales for such labels as Universal Motown Republic Group, Island Def Jam Music Group, Interscope Geffen A&M Records, A&M/Octone Records, MCA Nashville, Universal Records South, Lost Highway, Mercury Nashville, Verve Music Group, Decca Label Group, Universal Music Latino, Universal Music Enterprises, Hip–O, UTV, Disa, Machete Music, ABKCO, Concord Music Group, Hollywood, Emusica, Lyric Street, RMM, Thump, Rounder, Fonovisa, Varese Sarabande, Walt Disney, Big Machine, Show Dog Records, VI Music, Sybersound, Hidden Beach, Palm Pictures, and Universal Music Christian Group among many others. Fontana is the company’s independent sales, marketing and distribution arm, VE is its theatrical and home entertainment division, and UMGD Digital manages and distributes all of Universal Music Group’s digital assets, including mobile.