Online ticket broker SeatGeek goes public in $ 1.35 billion IPO in PSPC

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Online ticket seller SeatGeek has gone public following the planned merger with blank check firm RedBall Acquisition, the two companies said on Wednesday.

The merger values ​​SeatGeek at $ 1.35 billion and will generate gross proceeds of $ 675 million, including a $ 100 million PIPE private equity offering and $ 575 million held in trust on behalf of RedBall.

“By applying a multiple of 3.9 times near the midpoint of this range to SeatGeek’s estimated revenue in 2025 on a stand-alone basis, discounted at an indicative discount rate of 20%, we arrive at a present value estimated at $ 2.7 billion, ”RedBall CEO Alec Scheiner said on a conference call following the merger announcement. “This represents a 100% increase in the value of the transaction business of $ 1.35 billion.”

Redball and Redbird

Redball, a $ 575 million New York-based SPAC, is owned by private equity firm RedBird Capital Partners. RedBird has previously invested in Fenway Sports Group, YES Network and the late XFL.

The merger, which is expected to be finalized in the first quarter of 2022, values ​​New York-based SeatGeek at $ 1.35 billion. SeatGeek CEO Jack Groetzinger will retain his role in the merged company, which will retain the SeatGeek name.

Credit Suisse is acting as financial advisor to SeatGeek on the transaction, Cooley LLP acting as legal advisor. Credit Suisse also acts as the placement agent for the private placement offering of PIPE securities. Goldman Sachs advises RedBall.

After the merger is completed, the current owners of SeatGeek will own 63.5% of the combined entity, the company said in a statement. 425 deposit with the United States Securities and Exchange Commission.

SeatGeek background

SeatGeek was founded in 2009 by Russel D’Souza and Jack Groetzinger as an online ticket aggregator. In 2014, SeatGeek became an online ticket marketplace allowing buyers and sellers to sell tickets to each other directly on the platform.

Currently, SeatGeek is in partnership with professional sports leagues such as the National Football League and Major League Soccer, individual teams such as the Brooklyn Nets and various English Premier League teams, as well as theater and performance companies in the United States. United States and United Kingdom.

Read more: Analyst says PSPCs will remain in demand

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