Searchlight Capital Partners LP is buying a majority stake in TouchTunes from private equity firm 3i.
TouchTunes makes touch-screen jukeboxes for restaurants and bars. The company also developed a mobile app, and photo booth and Karaoke machines.
Searchlight Capital is a New York-based private equity firm that makes control and non-control investments. The firm is also invested in Hunter, the brand known for its rain boots, and Cengage Learning, an educational publisher.
TouchTunes went up for sale in September, Mergers & Acquisitions reported.
For London-based 3i, the deal provides an internal rate of return of 22 percent, and a 2.1x money multiple on the original investment of $40 million. 3i invested in TouchTunes in 2011. The firm's recent deals include a $160 million investment in Q Holding, a manufacturing company, and sale of LHI Technology in October.