SeatGeek Going Public Via SPAC

The merger with RedBall Acquisition values the mobile-centric ticketing platform at $1.35 billion.
Vincent RyanOctober 14, 2021

A leading ticketing marketplace announced a SPAC merger Wednesday.

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

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Executives involved in the deal have experience across all four major U.S. professional sports — the MLB, NBA, NFL, and NHL — along with European football leagues.

A private investment in public equity of $100 million is included as part of the SPAC merger. Investors in the PIPE include Accel, Qualtrics founder Ryan Smith, Kevin Durant, Rich Kleiman’s Thirty Five Ventures, and others.

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

Founded in 2009, SeatGeek began as a ticket aggregator. The company has transitioned and added additional business segments through the years.

Investors Rich Kleiman and Kevin Durant in 2017.

The company added a consumer marketplace in 2014 and an enterprise solution in 2016. As a result, SeatGeek now counts itself as a vertically integrated, mobile-centric ticketing platform.

SeatGeek has grown its market share over the years in the secondary market, going from 7.2% in 2019 to 10.9% in 2020. The company said its market share was 11.5% in the first half of 2021.

Gen Z is a crucial focus for SeatGeek with its mobile focus. The company said 36% of its customers are considered Gen Z members.

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

Growth Ahead

SeatGeek lists an addressable global live entertainment segment worth $126 billion, including a $58 billion U.S. market.

The enterprise business segment has seen strong growth, the company highlighted in its presentation.

SeatGeek has exclusive ticketing deals with the following teams and venues: Brooklyn Nets (Barclays Center), Cleveland Cavaliers (Rocket Mortgage FieldHouse), Dallas Cowboys (AT&T Stadium), and half of the English Premier League.

The company said it continues to add enterprise customers that include stadiums, arenas, theaters, casinos, horse tracks, and golf events.

SeatGeek says there is pent-up demand for tickets for sports and concerts following many shutdowns during the COVID-19 pandemic.

“We’ve grown substantially in 2021, gaining in market share as the live entertainment industry recovers,” SeatGeek co-founder and CEO Jack Groetzinger said.

The company said it would use proceeds from the SPAC merger to continue its enterprise partnerships and scale marketing opportunities. Mergers and acquisitions and international expansion are also planned for future growth.

SeatGeek had compounded annual growth of 70% from 2016 to 2019.

The company 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 year to hit positive EBITDA, with a projected $53 million.

This story originally appeared on Benzinga. © 2021

Benzinga does not provide investment advice. All rights reserved.

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