Benzinga | Sep 8, 2021 05:18AM EDT

Digital Ally Announced Acquisition of TicketSmarter, LLC, and GoodyTickets, LLC for $14.1M in Cash and Stock

Digital Ally, Inc. (NASDAQ:DGLY) announces the acquisition of TicketSmarter, LLC ('TicketSmarter'), and Goody Tickets, LLC ('Goody Tickets') a national ticket marketplace with 48 million tickets for sale for over 125,000 live events, through its platform TicketSmarter.com.

The purchase price was $14.1 million with approximately 70% paid at closing through a combination of cash and Digital Ally shares, and the remaining balance to be paid through an earn-out promissory note payable by March 31, 2022. The earnout note is subject to adjustment based on the 2021 earnings before interest, taxes, depreciation, and amortization ('EBITDA') of TicketSmarter, Inc. Digital Ally formed TicketSmarter, Inc., a new wholly-owned subsidiary to complete the acquisition of both TicketSmarter and Goody Tickets which businesses will operate under the name TicketSmarter, Inc.

'We are excited to add TicketSmarter to our growing holdings of solid earnings and growth-potential businesses; we believe the TicketSmarter acquisition will be accretive to earnings immediately and that shareholders will benefit from its long-term value based on the attractive price we paid as compared to the multiples commanded by similar public companies,' said Stan Ross, CEO of Digital Ally, adding, 'We are eager to work with Jeff Goodman and his team to continue this business on its growth trajectory, while leveraging organizational synergies and optimizing integration opportunities with other Digital Ally holdings, such as our video recording and health protection products.'

'As we considered funding strategies for the fulfillment of our long-term vision for TicketSmarter, it became apparent that Digital Ally's resources - and Stan's connections in the live entertainment industry - would be critical for our company's continued growth as an innovation leader in our industry,' said Jeff Goodman, CEO of TicketSmarter.

With the formation of TicketSmarter, Inc., Digital Ally continues to build its holdings with organizations that demonstrate the common traits of positive earnings, growth potential, higher-margin service channels and organizational synergies that take advantage of several of the Digital Ally historical businesses and relationships. The historical consistency shown by TicketSmarter and Goody Tickets prior to the impact of COVID-19 resulted in revenues exceeding $20 million annually, with approximate average annual earnings exceeding $1.5 million.