(Bloomberg) -- Vivid Seats, a digital ticketing marketplace looking to benefit from the resumption of live performances, agreed to go public via a merger with Horizon Acquisition Corp., a blank-check firm led by Todd Boehly.
The parties expect the combined company to have a market capitalization of about $1.95 billion, they said in a statement Thursday. Bloomberg News reported last month that Vivid Seats was in advanced talks to go public through Horizon.
Horizon shares were up 3.1% to $10.10 in premarket trading at 7:32 a.m. in New York.
Vivid Seats' accommodating policies during the coronavirus pandemic have given it a "unique opportunity to drive outsized growth during post-pandemic recovery," according to the statement. Horizon is sponsored by an affiliate of Eldridge Industries, a Greenwich, Connecticut-based investment firm founded by Boehly, an ex-Guggenheim executive who co-owns the Los Angeles Dodgers major league baseball team.
Vivid Seats will receive a total of about $769 million in gross proceeds from the transaction, the parties said. Institutional investors have committed to infusing $225 million into the combined company through a so-called private investment in public equity.
The deal is a boost to the market for special purpose acquisition companies, which saw months of torrid activity freeze up lately.
Evercore and Latham & Watkins advised Vivid Seats, while Credit Suisse, Deutsche Bank, RBC Capital Markets and Kirkland & Ellis advised Horizon.