SeatGeek says it can now “deliver the most powerful ticketing platform in the industry” after agreeing a deal to buy software company TopTix for $56m (€52m/£44m).
The New York-based mobile-focused ticket exchange platform described the deal as “a major move that instantly makes SeatGeek one of the largest primary ticketers in the world”.
SeatGeek said TopTix will power the expansion of SeatGeek Open, the company’s recently-launched primary ticketing platform that enables artists and teams to sell tickets directly within other apps and websites, in places where fans are spending time and consuming content.
It also signalled a warning to rivals by saying that with the addition of the Israeli firm’s technology it can now “replace industry incumbents as the premiere ticketing platform for rightsholders”.
“TopTix has by far the best backend primary ticketing technology in the world, and we humbly believe that at SeatGeek we have created what is easily the best user experience,” said SeatGeek co-founder Jack Groetzinger.
“Combining these two platforms together allows SeatGeek to deliver the most powerful — and only open — ticketing platform in the industry. We’re thrilled to be working with the team from TopTix to continue to build our open ecosystem that is transforming the way people access live events.”
The acquisition was financed by a new $57m Series D investment round in SeatGeek led by Glynn Capital, with participation from existing investors Accel, Causeway Media Partners, Haystack Partners, Mousse Partners, and Technology Crossover Ventures.
“As anyone who has spent time in the entertainment industry knows, ticketing is a pain point for teams, artists, venues, and their fans,” said David Glynn of Glynn Capital.
“We believe that SeatGeek, strengthened by TopTix, is providing a better option through an innovative business model and best-in-class technology, and we think that’s the key to turning a massive industry on its head.”
TopTix has served as SeatGeek’s technology partner for the company’s first primary ticketing client, Sporting Kansas City of Major League Soccer. SeatGeek described early results as “promising”, with the technology helping Sporting KC increase online sales by 61 per cent thus far compared to last season, and drive four times the amount of mobile purchasing the team saw with their previous ticket provider throughout 2016.
TopTix, which processes 80 million tickets a year in 16 countries across the globe, will operate as a subsidiary of SeatGeek, continuing to service clients across the globe.
Eli Dagan, TopTix co-founder, who will continue to lead the core engineering team in Israel, said: “Our teams share a passion for innovation and a mission to build long-term partnerships. I’m thrilled that together we will continue to build a product tailored to the needs of all our clients around the world.”