NEWS
Press Release:
Allegro Media Group acquisition of Softland Corporation
May 13th, 2008 - Portland, Oregon
Allegro Media Group announces new financing and the acquisition of Softland Corporation
Allegro Media Group announced today that it has obtained up to $37 million
dollars in new financing for content and other strategic acquisitions. The
financing is comprised of an initial equity investment and access to a further
line of equity from Canterbury Park Capital, a private equity fund; and a
subordinated note and a revolving line of credit from US Bank (NYSE:USB).
Joseph Micallef, Chairman and CEO of Allegro indicated that with the financing
secured by Allegro, he “certainly anticipates executing a growth and
acquisition plan,” adding that, “the independent sector needs
to go through the same degree of consolidation that has brought the majors
down from six to four, and eventually will likely bring it to three.” Of
particular focus for the future, Micallef noted, “Is that we will be
accelerating our acquisition of content. We have been acquiring or producing
content for years,” he observed, “but this financing will certainly
allow us to pick up both the pace and scope significantly.”
Allegro was represented and assisted on the equity financing by Oliver Capital
Partners Inc., of Calgary, Alberta, an M&A and corporate finance boutique
specializing in Media, Entertainment and Communications.
Established by a group of business leaders and entrepreneurs, Canterbury
Park is a private equity firm that acquires and invests in established and
profitable small to mid-market companies. The fund seeks opportunities to
make meaningful investments in businesses and shape their strategic direction,
backing and working alongside their management team to further grow and expand
the business.
Concurrently with the financing, Allegro announced today that it has acquired
all of the outstanding shares of Softland Corporation from its founder Larry
Goldberg and members of his family.
Softland is the exclusive distributor of audio and video entertainment products
to the Marine Exchange Service (MCX) as well as to a number of other retail
operations managed by other branches of the Armed Forces. Pat Nugent, the
current CEO of Softland, will continue in his role. Larry Goldberg, founder
and the principal shareholder of Softland Corporation, welcomed the transaction
and emphasized the fit between the two organizations. “Together, the
two companies will have both the resources and the skills to take their service
program in support of military exchanges worldwide to the next level.” The
transaction also represents a milestone moment for Goldberg, who will retire
after 46 years in the audio and video distribution business.
Mr. Micallef described the transaction as an important milestone in the
evolution and growth of Allegro, noting that “Softland’s unique
experience servicing the military channel provides Allegro with significant
growth opportunities” and added that it “further strengthens
our position as a broadly diversified and fast growing, independent media
company.” The combined companies will have combined revenues approaching
$100 million, making Allegro one of the largest independent media companies
of its kind in North America.
About Allegro Media Group
Allegro Media Group is one of the largest, vertically integrated, independent
media groups in North America. The company produces and distributes a broad
array of proprietary audio and video entertainment content as well as provides,
on an exclusive basis, distribution and marketing services to over 400
music and video labels in both the physical and digital space.
Allegro currently distributes physical products to over 8,000 brick and
mortar store fronts in a broad array of different retail channels and distributes
digitally to all of the major internet sites around the world, including
Apple’s iTunes (Nasdaq GS: AAPL), the company’s single largest
digital customer. For more information please visit www.allegromediagroup.com.
SOURCE Allegro Media Group