Kustom Entertainment has agreed to acquire TFL, a ticketing technology firm, in a deal worth $112 million. This acquisition includes $89.6 million in cash and $22.4 million in Kustom stock, plus a $35 million debt repayment. However, the transaction is contingent on Kustom securing additional financing, which it plans to pursue through a public offering.
The current agreement stipulates a deadline of October 15 for closing the deal, but this could extend by 15 days if Kustom files for financing beforehand. TFL’s technology powers TicketSmarter.com and adds a wider distribution network to Kustom’s operations, which are pivoting towards live entertainment.
CEO Stanton E. Ross highlighted that TFL’s profitability and technology will enhance Kustom’s ticketing and event production capabilities. The deal structure includes potential adjustments based on TFL’s performance through 2027.
Completion of the acquisition is subject to financing, shareholder approval, and other conditions, with either party able to exit the agreement if it isn’t finalized by the set deadline.
