October 3, 2023

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SeatGeek Going Public Via SPAC

A major ticketing market announced a SPAC merger Wednesday.

SeatGeek announced a SPAC merger with RedBall Acquisition (RBAC). The deal gives the enterprise an company benefit of $1.35 billion.

Executives associated in the deal have practical experience throughout all 4 important U.S. specialist sporting activities — the MLB, NBA, NFL, and NHL — along with European soccer leagues.

A non-public financial investment in public equity of $one hundred million is incorporated as portion of the SPAC merger. Investors in the PIPE include Accel, Qualtrics founder Ryan Smith, Kevin Durant, Abundant Kleiman’s Thirty 5 Ventures, and other individuals.

Public RBAC shareholders will own 28.5% of the enterprise right after the merger.

Started in 2009, SeatGeek commenced as a ticket aggregator. The enterprise has transitioned and extra additional organization segments through the many years.

Investors Abundant Kleiman and Kevin Durant in 2017.

The enterprise extra a client market in 2014 and an company remedy in 2016. As a final result, SeatGeek now counts by itself as a vertically integrated, cellular-centric ticketing platform.

SeatGeek has developed its sector share over the many years in the secondary sector, going from 7.2% in 2019 to ten.9% in 2020. The enterprise mentioned its sector share was 11.5% in the to start with half of 2021.

Gen Z is a crucial aim for SeatGeek with its cellular aim. The enterprise mentioned 36% of its customers are thought of Gen Z users.

Amongst the competitors for SeatGeek are Vivid Seats, which is also going public via SPAC Horizon Acquisition.

Advancement Ahead

SeatGeek lists an addressable international reside leisure phase truly worth $126 billion, which includes a $58 billion U.S. sector.

The company organization phase has observed powerful development, the enterprise highlighted in its presentation.

SeatGeek has exclusive ticketing bargains with the next groups and venues: Brooklyn Nets (Barclays Heart), Cleveland Cavaliers (Rocket Home finance loan FieldHouse), Dallas Cowboys (AT&T Stadium), and half of the English Premier League.

The enterprise mentioned it continues to include company customers that include things like stadiums, arenas, theaters, casinos, horse tracks, and golfing situations.

SeatGeek states there is pent-up desire for tickets for sporting activities and live shows next numerous shutdowns all through the COVID-19 pandemic.

“We’ve developed considerably in 2021, getting in sector share as the reside leisure industry recovers,” SeatGeek co-founder and CEO Jack Groetzinger mentioned.

The enterprise mentioned it would use proceeds from the SPAC merger to continue on its company partnerships and scale advertising and marketing chances. Mergers and acquisitions and intercontinental growth are also planned for long term development.

SeatGeek experienced compounded yearly development of 70% from 2016 to 2019.

The enterprise saw revenue of $33 million in fiscal 2020. Projections see revenue hitting $132 million in fiscal 2021 and $345 million in fiscal 2022.

SeatGeek lists fiscal 2024 as the yr to hit optimistic EBITDA, with a projected $fifty three million.

This story originally appeared on Benzinga. © 2021 Benzinga.com.

Benzinga does not provide financial investment assistance. All rights reserved.

Photo by Steve Jennings/Getty Images for TechCrunch
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