Chicago-based ticket marketplace, Vivid Seats Inc. has announced its strategic move to acquire WD Holdings Co., Ltd. (known as “Wavedash”), a prominent online ticket marketplace situated in Tokyo, Japan. The deal, valued at approximately ¥8.7 billion (approximately $61 million) in cash, is slated to close in the third quarter of 2023, contingent on regulatory approvals and customary closing conditions.
The news was announced this week, alongside a strong Q2 earnings report from Vivid Seats, which claimed a record GOV and raised its earnings estimates for the year.
Wavedash’s strong foothold in the Japanese secondary ticketing market makes it an attractive proposition for Vivid Seats. With a significant and continuously growing customer base, supported by robust technology and compliance capabilities, Wavedash is a leader in its domain. Stan Chia, Vivid Seats CEO, highlighted the strategic potential of this acquisition, noting, “Wavedash presents a strategically exciting and financially accretive opportunity for Vivid Seats.” Chia added that the acquisition aligns with Vivid Seats’ expansion plans to tap into international markets.
Lawrence Fey, Vivid Seats CFO, emphasized the financial value of Wavedash. With reported revenue of about $35 million for the fiscal year ending March 31, 2023, and positive EBITDA margins, the acquisition is expected to offer both strategic and financial benefits.
Upon completion of the deal, Wavedash will function as a wholly owned subsidiary of Vivid Seats, allowing the latter to leverage Wavedash’s established presence and expertise in the Japanese market. Vivid Seats’ legal counsel is being provided by Simmons & Simmons and Nishimura & Asahi, while BDA Partners and TMI Associates are serving as financial advisor and legal counsel respectively to the shareholders of WD Holdings.
Founded in 2001, Vivid Seats has evolved into a premier online ticket marketplace with a commitment to connecting fans to live events. With an extensive range of events and tickets across North America, the company also operates the Vivid Seats Rewards program. Vivid Seats has garnered recognition as the official ticketing partner for notable entertainment brands like ESPN, Rolling Stone, and the Los Angeles Clippers. The company’s focus on enhancing live experiences has led to the creation of Vivid Picks, a daily fantasy sports app.
The acquisition aligns with Vivid Seats’ vision of expanding its global footprint and strengthening its position as a major player in the ticketing industry. As it takes this significant step towards international growth, Vivid Seats remains committed to delivering value and shared experiences to fans worldwide.
