News

Mood Media to sells retail point-of-sale business to Somerset Group

TORONTO – Mood Media Corp. (TSX:MM) said Wednesday that it has signed a deal to sell a majority of its Mood Entertainment subsidiary’s retail point-of-purchase business to Somerset Group Ltd.

Financial terms of the agreement were not available.

Mood Entertainment produces and distributes specialty music and DVDs sold to through interactive displays in the United States and Canada.

Somerset Group, is a subsidiary of Allegro Corp., an independent media company.

The deal, subject to closing conditions including regulatory approval, is expected to be completed in the second quarter.

Last month, Mood Media announced it had hired Credit Suisse Securities and Morgan Stanley as financial advisers and was considering strategic alternatives, including the possibility of selling the music service company.

The company creates visual, audio and scent systems for retailers.

Among Mood Media’s best-known acquisitions was Muzak Holdings LLC in May 2011, which provides music services to customers.

Last year, Mood Media made several acquisitions, including DMX Holdings, which provides multi-sensory branding services.