Digital Ally, Inc. (the “Company”), which develops, manufactures, and markets advanced video recording products and other critical safety products for law enforcement, emergency management, fleet safety, and security for venues and events, 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.
With 48 million tickets for sale for over 125,000 live events TicketSmarter® is a national ticket marketplace offering tickets for live events featuring sports, concerts and theater. TicketSmarter is the official ticket resell partner of Rose Bowl Stadium and the title sponsor of the TicketSmarter Birmingham Bowl with ESPN Events. Additionally, TicketSmarter is the official ticket resell partner of more than 35 collegiate conferences, 250+ universities, and hundreds of events, venues, and charities nationally – including St. Jude Children’s Research Hospital, V Foundation and Quarterbacking Children’s Health Foundation.
About Digital Ally
Digital Ally® specializes in the design and manufacturing of the highest quality video recording equipment and video analytic software. Digital Ally pushes the boundaries of technology in industries such as law enforcement, emergency management, fleet safety and event security. Digital Ally’s complete product solutions include vehicle and body cameras, flexible software storage, automatic recording technology and various critical safety products. In addition, Digital Ally launched the Shield Health Protection Products line including Shield Cleansers, a highly effective, yet safe, disinfectant and sanitizer for use against SARS-CoV-2, a non-contact thermometer/controlled-entry device, an electrostatic sprayer for fast and efficient disinfecting of large areas, and a variety of personal protective equipment including face masks, gloves and sanitizer wipes. With its recent formation of Digital Ally Healthcare, Inc., and acquisition of TicketSmarter, LLC, Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential and organizational synergies.