Magex wins $80m investment

Electronic distribution company Magex has secured an $80m injection from a consortium lead by Goldman Sachs.

The investment is one of the largest private equity outlays ever made into a European Internet company, and will be used to fund the firm's expansion into the US.

Andrew Farrow, head of business development at Magex, said the company wanted investors who could bring more than just money. "These are the sorts of investors who have the ability to open board room doors across the world," he said.

Other members of the consortium include financial services firm Capital Z, Universal Music Group, Reuters and InterTrust Technologies. High-street bank NatWest, which originally set up the venture, will remain a significant minority shareholder.

"At the moment everyone's attention is on the digital delivery of music - it's the buzz market," said Farrow. "But in the future it will be business-to-business publishing and analyst reports that will be the real market."

Magex plans to expand its US operations - a market it claims is key to global domination. The funding will also be invested into research and development.