Zomato has announced its acquisition of Paytm’s entertainment ticketing business for ₹2,048 crore, marking a significant expansion into the ticketing industry.
Share Purchase Agreement (SPA) Details
The food delivery giant revealed that its board has authorized a Share Purchase Agreement (SPA) with One97 Communication (Paytm), Wasteland Entertainment (WEPL), and Orbgen Technologies (WEPL) to acquire their entertainment ticketing business.
Overview of Acquired Businesses
The businesses involved include OTPL, which specializes in listing and selling movie tickets, and WEPL, which focuses on listing and selling event tickets, among other related services.
Financial Performance of Acquired Entities
In FY24, the acquired businesses recorded a combined Gross Order Value (GOV) of over ₹2,000 crore, reflecting a 29% year-over-year growth. During this period, the businesses generated ₹297 crore in revenue and ₹29 crore in Adjusted EBITDA, equivalent to an Adjusted EBITDA margin of approximately 1.5% as a percentage of GOV.
Financial Breakdown of the Acquisition
Zomato has agreed to pay ₹2,048 crore for the acquisition, with ₹1,264.6 crore allocated for OTPL and ₹783.8 crore for WEPL.
Transfer of Ticketing Businesses to Subsidiaries
As per the agreement, OCL will transfer its movie ticketing and sports and events ticketing businesses to its fully owned subsidiaries, OTPL and WEPL, through a slump sale.
Zomato's Investment and Ownership Transition
Zomato will make a primary infusion into OTPL and WEPL through a preferential allotment equivalent to the slump sale consideration. Subsequently, the company will acquire the entire stock held by OCL in OTPL and WEPL via a share purchase transaction, converting OTPL and WEPL into wholly owned subsidiaries of Zomato.
Inputs by Agencies
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