Etix is spending $13 million in cash and up to $3.5 million in a second phase payment to purchase ExtremeTix, Amplify has learned.
The buyout is being led by Parthenon Capital Partners, which announced a partnership with Etix earlier today.
“With the addition of Parthenon as our capital partner, we see acquisition, as well as organic growth, as an opportunity to continue to strengthen our business,” Travis Janovich said in a press release. “Acquiring other ticketing companies with complementary customer bases and technology systems and partnering with their management teams and employees creates an opportunity for additional growth for both Etix as well as the partner businesses.”
Etix’s purchase of ExtremeTix will be a cash buy out of 100% of its outstanding stock, paid out in two phases. The first phase will be $13 million, paid out at the end of the month. The second phase will be based on an earn-out of additional revenue in 2017 over 2016 with $2 paid for every $1 increase, capped not to exceed $3.5 million.
“The timing of this transaction could not be better,” ExtemeTix officials wrote in a letter to shareholders. “For ExtremeTix to be able to continue to grow into a profitable business would have required a great deal more capital than we were able to raise.”
ExtremeTix has hired M&A firm Acquiom to represent its shareholdings in the transaction.
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