Exhibit 99.1
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( BW)(WA-MUZAK-LIMITED) Muzak Agrees To Merge With ACN; Music Company To Join
With Its Largest Independent Franchisee
Business Editors
SEATTLE--(BUSINESS WIRE)--Feb. 1, 1999--Muzak Limited Partnership today
announced it has entered into a definite merger agreement to be acquired by
Audio Communications Network (ACN).
Since 1992, Muzak has been controlled by affiliates of Centre Partners
Management LLC, a New York-based private equity firm. Under terms of the
agreement, Muzak will be merged with ACN, the largest independent franchisee of
Muzak services in the United States, and a portfolio company of ABRY Broadcast
Partners III, X.X. XXXX Broadcast Partners III, L.P. is managed by ABRY
Partners, Inc., a Boston-based, private equity firm managing $825 million in
equity capital and specializing in the media business.
The consummation of the merger, which is expected to close in March 1999, is
subject to a number of conditions, including completion of ACN's financing for
the transaction. Upon consummation of the merger, ACN will change its name to
Muzak, LLC.
"We are excited about this merger, which offers Muzak many opportunities to
continue to improve its client services and its growth," said Xxxx Xxxx, Muzak's
CEO.
Consideration paid to Muzak's current owners in the transaction will be
comprised of approximately $250 million of cash and the assumption of debt, in
addition to a continuing ownership interest in ACN. The current owners of Muzak
will retain equity interests in two unrelated Internet businesses.
Through Audio Architecture, the art of capturing the emotional power of
music and putting it to work for clients seeking to enhance their brand image,
Muzak serves approximately 250,000 customer locations in the United States and
15 foreign countries; more than 80 million people hear it each day. The
Seattle-based company delivers music, videos, messaging and sound system design
through more than 200 sales and service locations.
--30--RYG/se*
CONTACT: WHaM Communications
Xxxxxxx Xxxxxxxx, 206/223-1606
Xxxxxx Xxxx, 206/223-1606
xxxxx@xxxxxxxx.xxx
