Online ticket marketplace Vivid Seats has expanded into Japan with the acquisition of Wavedash, a fellow online ticket marketplace headquartered in Tokyo.
Vivid Seats is set to acquire Wavedash for an enterprise value of roughly ¥8.7 billion (£48m/€56m/$61m) in cash.
Stan Chia, chief executive of Vivid Seats, said: “Wavedash presents a strategically exciting and financially accretive opportunity for Vivid Seats. Wavedash is the market leader in the Japanese secondary ticketing market with a large and growing customer network supported by robust technology and compliance capabilities.
“We are excited to grow our TAM [Total Available Market] by expanding internationally with a market leading business.”
Lawrence Fey, Vivid Seats’ chief financial officer, added: “Today’s announcement represents another example of how we utilise our strong balance sheet and cash flow profile to deliver accretive and TAM-expanding opportunities that will deliver long-term shareholder value.
“With approximately $35 million of revenue in the fiscal year ended March 31, 2023, and accretive EBITDA margins, we are excited about the strategic and financial impact Wavedash will bring.”
The transaction is expected to close in the third quarter of 2023, subject to regulatory requirements and other customary closing conditions.
Following the completion of the deal, Wavedash will operate as a wholly owned subsidiary of Vivid Seats.
Simmons & Simmons and Nishimura & Asahi served as the legal counsel to Vivid Seats. BDA Partners acted as the financial advisor and TMI Associates served as the legal counsel to the shareholders of WD Holdings.