A UK private equity firm has bought a controlling stake in the North American business of iconic magazine publisher Time Out with plans to capitalise on the growing digital media sector.

London-based Oakley Capital Investments and its buyout arm Oakley Private Equity have bought a 65.7% stake in Time Out's New York business whiich holds the rights for North and Central America, according to a statement. Oakley bought half of Time Out's UK-based business in November in a deal that valued the company at about £20m.