US ticketing giant Ticketmaster Entertainment has announced it is buying Cape Town-based Quicket in an effort to expand its footprint in Africa.
The value of the deal has not been disclosed.
Ticketmaster, which is owned by New York Stock Exchange-listed Live Nation Entertainment, processes some half a billion tickets a year across the 30 markets in which it operates.
A report by research and advisory firm Custom Market Insights (CMI) estimates the size of the global ticketing market at US$60-billion, with a projected compound annual growth rate of 7.1% from 2024 to 2033.
According to a statement, Ticketmaster aims to combine its brand power with Quicket’s self-service platforms and event organiser tools to drive growth in South Africa, Nigeria, Uganda, Kenya, Zambia and Botswana.
“With the widespread adoption of smartphones and internet access, online ticketing has become increasingly popular, offering flexibility and convenience to both event organisers and attendees,” said Ticketmaster president Mark Yovich in the statement.
“The market is characterised by continuous technological advancements, dynamic pricing strategies, and a shift towards virtual and hybrid event formats, reflecting evolving consumer preferences and industry trends,” said the CMI report.
Rapid growth
A Henley & Partners report forecasts that during the same period (2024-2033), Africa’s millionaire population will rise by 59%, fuelled by strong growth in key sectors such as fintech, eco-tourism, business process outsourcing, software development, rare metals mining, green tech, media and entertainment, and wealth management.
“Looking ahead, Africa’s youthful population and vast resources represent a significant opportunity. The continent’s growing middle class and increasing consumer spending power make it an attractive market for foreign firms seeking new growth frontiers,” said Dominic Volek, group head of private clients at Henley & Partners, in a blog post.
Quicket MD James Tagg will remain at the helm of the company, which will continue to operate as a standalone business unit from Cape Town as it works to realise its growth plans in the rest of Africa.
The Ticketmaster acquisition also marks an exit from its investment in Quicket by venture capital firm Knife Capital.
“In 2016, Quicket joined our Grindstone Accelerator programme, which engineers growth for start-ups. In 2017, Knife invested via its Section 12J VCC, KNF Ventures, to streamline Quicket’s service offering in the local market and focus on growth into key markets in the rest of Africa,” said Knife Capital CEO Keet van Zyl.
“When the Covid pandemic hit in 2020, it was an initial shock to Quicket’s business model as live entertainment ground to a halt worldwide, but this proved to be a catalyst for enhanced growth with alternative online revenue streams,” Van Zyl said.
“Quicket’s high growth rate while remaining capital efficient, its world-class ticketing offering and resilient team piqued inbound interest from several potential acquirers throughout its journey. But because of the shared passion for connecting African artists to a global audience in a seamless customer experience, Ticketmaster is a perfect fit for the next growth phase of Quicket.” – © 2024 NewsCentral Media
