RedBall Acquisition Corp and SeatGeek have announced today (Wednesday) that the companies have mutually agreed to terminate their business combination agreement, and plan of reorganisation, with immediate effect.
The special purpose acquisition company (SPAC) and ticketing platform SeatGeek first announced the business combination, which was designed to take SeatGeek public, in October last year.
In a press release, the two parties cited the current unfavourable market conditions, adding that this has particularly impacted the “growth of technology companies”.
Jack Groetzinger, SeatGeek chief executive and co-founder, said: “Given the volatility in the public markets, together, we determined that a termination of the business combination was in the best interest of all parties.
“We have a tremendous amount of respect for the great team at RedBall and appreciate their partnership throughout the process. SeatGeek recently announced two record-breaking quarters – Q3 and Q4 of 2022 – and we remain confident in our continued long-term growth trajectory.”
Andy Gordon, partner at RedBird Capital, on behalf of RedBall, added: “SeatGeek is a great technology company with a proven track record of growth and strong momentum. However, given current market conditions, it was mutually determined that the best option for all parties at this time is for SeatGeek to remain private. We wish this incredible team continued success.”
As required by Cayman Islands law, RedBall will convene the extraordinary general meeting of its shareholders, which is scheduled for today. As a result of the termination of the business combination agreement and connected matters, the proposed resolutions will not be put forward for the approval of RedBall shareholders.
In light of the termination of the business combination agreement, shares submitted for redemption to RedBall will not be redeemed and will be returned to the respective holder, broker or bank.