MTS acquires Ticketland from iTech Capital in a deal valued at Rouble 3.25 billion, projecting a 38% return for investors.

Target Information

The deal involved a transaction of Rouble 3.25 billion, with an internal rate of return for investors projected at approximately 38%, including interim dividends. The investment was primarily made by iTech Capital, which committed US $10 million to establish one of Eastern Europe's largest ticketing holdings in early 2013. This initial investment facilitated the acquisition of the Moscow network of theatre box offices from the Moscow government and was driven by the goal of consolidating various assets within the ticketing industry.

Following this acquisition, the holding company expanded its portfolio by acquiring 'United Art Tickets', which operates in the theatre and concert ticket sales sector, along with 'Arena', a company that specializes in sports ticket processing. As a result of these strategic moves, Ticketland has emerged as the leading player in the ticket sales market across major cities such as Moscow, St. Petersburg, Kazan, and Sochi.

Industry Overview

The Russian ticketing industry has seen significant growth in recent years, fueled by increasing consumer demand for entertainment and cultural events. As of 2017, Ticketland sold over 3.5 million tickets, achieving a