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Listings magazine's part-owner takes controlling stake in Time Out New York, which controls brand in the US, Canada and parts of Central America and the Caribbean
The owners of Time Out have struck a deal worth almost £22m to take control of the listings brand across North and South America, paving the way to expand the magazine into 50 cities.
Oakley Capital – the private equity company that acquired a 50% stake in Time Out founder Tony Elliott's UK business for £11.3m in November – has taken a controlling stake in Time Out New York, which controls the use of the brand across the US, Canada, Mexico and countries in Central America and the Caribbean.
Oakley Capital – run by Peter Dubens, the serial entrepreneur behind businesses including Pipex and 365 Media – has taken a 65.7% stake in Time Out New York. Oakley is providing £14.2m, comprising £9.1m in equity financing and £5.1m in senior debt and mezzanine financing.
Existing investors Clark Estates, which co-founded the Singer Sewing machine empire in 1850, and the Louis-Dreyfus family have also invested in the new ownership structure, valuing the deal at £21.5m.
Despite Time Out New York controlling the rights to the listings-guide business in a large number of markets, up until now only New York and São Paulo versions of the magazine have been launched, along with some city guide books.
Oakley Partners, which now has a total commitment to the Time Out business of £25.5m, has set aside significant funds for developing Time Out products including new city-specific magazines and digital only-launches.
It is also looking at developing a global digital platform allowing it to boost revenues and branch out into e-commerce by selling listing-related products such as tickets, holidays and restaurant offers.
Likely launch destinations include Los Angeles, Boston, Miami, Mexico City and Buenos Aires as well as major European cities including Paris and Berlin. The company hopes to reach its target of 50 editions of Time Out by mid-2013.
"Our vision for the future of Time Out is to extend our online offering and by doing so accelerate from magazine publisher to digital media group," said Tony Elliott, chairman and founder of Time Out.
The only rights in North America that Oakley does not now control is Time Out Chicago, where the six-year old business is controlled by businessman Joe Mansueto. Time Out New York holds a minority stake in Time Out Chicago.
