In another move designed to expand its portfolio of companies, TechFinancials has bought blockchain based ticketing service Footies.
The company announced this recently as it seeks to further get into the blockchain space. The acquisition is on the heels of its CEDEX diamonds exchange purchase, where it has a 92 percent stake.
TechFinancials is increasingly buying up more companies with prospects of a next generation technology. Footies is a ticketing service which uses blockchain as its platform for the sales and distribution of tickets.
TechFinancials intends to rename the company into NewCo, and focus on the further development of its blockchain based ticketing technology, with the hopes of creating a more seamless and efficient ticketing process. More, it intends to improve event economics management for sports teams and venues.
TechFinancials itself is increasingly focusing on creating a more diverse portfolio of small and medium sized companies that are tackling real world problems through the use of modern technology.
The first phase of development after the acquisition is the creation of a facility that will help sports organizations fully manage and control how they sell and distribute their tickets. This will most likely include a tracking technology that will also target secondary ticket sales points.
To make this a reality, the company is bringing Ian Are, Liverpool FC’s ex-CEO on board as the chairman of the new company. NewCo’s technology combined with TechFinancials’s blockchain infrastructure will help improve the company’s odds of being successful at the new venture.
The secondary ticket market is often ripe with speculations, which go on to fuel exorbitant ticket prices. As a result, many fans and prospective attendees cannot go to these events. This isnt good for clubs, teams and their fans. NewCo’s mission is to help reduce these prices, while offering all parties a fair deal.
“There is huge demand for the secondary ticketing market in the sporting industry to be revolutionized in order to make it fully transparent and to make sure that a fairer deal is ensured for both the venues and the customers.”
Said Ian Ayre.
He went on to state that ticket scalping and arbitrage has not been very beneficial to both fans and teams, and hopes that NewCo’s solution will help bring some sanity and order back to the secondary ticketing markets.
Terms Of Acquisition
The acquisition by TechFinancials makes it the majority shareholder in the new company. According to the agreements, TechFinancials will hold 75 percent, while Footies will hold 25 percent of NewCo.
The new agreement between both companies involves TechFinancials providing capital to the new company, to a maximum of $500, 000. This will be used by NewCo to help develop a working prototype that will be tested on football club in Europe. This will help prove the viability of the concept or the lack of it.
TechFinancials will also be supporting NewCo with its blockchain infrastructure at zero cost, through a licensing agreement reached during the deal.
According to Asaf Lahav, CEO of TechFinancials,
“TechFinancials uses blockchain technology, tokenization and smart contracts to make trading and exchanging “real assets” easier, cheaper and more accessible… With the Footies platform built on the Company’s pioneering proprietary blockchain infrastructure, we aim to disrupt the broken market of sports ticketing and bring the power back to venues, clubs and fans,”