Shares of Tix Corporation (OTCBB: TIXC) jumped up today after the company announced the acquisition of Exhibit Merchandising earlier this morning. TIXC closed up 91 cents (13 percent) to $7.95 per share on volume of just over 120,000 shares.
TIXC purchased all of the assets of Exhibit Merchandising LLC for a total of approximately $11.45 million in cash, (including approximately $3.45 million for inventory), and 5 million restricted shares of common stock.
Based in Akron, Ohio, Exhibit Merchandising was formed to handle the affiliated merchandising opportunities that its principals created in Arts & Exhibitions, a partner in the successful King Tutankhamen museum exhibition currently touring many of the world’s top museums. Exhibit Merchandising sells themed souvenirs, memorabilia and collector’s items in specialty stores it operates within the museums presenting the exhibitions. Merchandising and store rights for future museum exhibition tours have been contracted.
“We are thrilled by this acquisition and believe the Company will benefit greatly in three distinct ways,” said Mitch Francis – CEO of TIXC – in a statement. First, Exhibit Merchandising has the potential of generating significant revenue from its branded merchandise sales at the extremely high-profile exhibitions it already has under contract. Second, the outstanding sources for the supply of branded merchandise coupled with mature expertise in the marketing and sales of the products provide the company with an opportunity to expand the business by offering these capabilities to the producers of top shows and entertainment with whom Tix enjoys multiple-year relationships. Third, as Tix Corporation begins to take its ticket selling business models nationwide, there is a potential for involvement in the marketing and ticketing of the exhibits themselves.”
TIXC’s wholly-owned subsidiary, Tix4Tonight, sells tickets for Las Vegas shows, concerts, attractions and sporting events at half-price, on the same day of the performance. The company also offers two additional discount products at its Las Vegas facilities, Tix4Golf and Tix4Dinners. Tix4Golf offers discount golf tee times for over 35 courses in Las Vegas for both same-day and advanced bookings and Tix4Dinners offers up to 50 percent off entrees at local Las Vegas restaurants and buffets. The company’s recent acquisition, Tix4AnyEvent.com, sells premium tickets to concerts, theater and sporting events throughout the country.
