LOS ANGELES (CelebrityAccess MediaWire) — A company is attempting to consolidate established secondary ticket brokers with more than $1 million in sales for the last two years and net margins of 23%-30%.
According to a story reported in TicketNews, Commerce Holdings has been sending unsolicited letters to secondary ticket brokers that fit the bill with an eye towards acquisition and has already acquired one broker, Golden Circle.
"We believe the secondary ticket industry is about to undergo an evolution, and with that evolution, there will be great opportunities for flexible, integrated, and technology linked ticket brokerage firms. Even though the secondary ticket market as a whole has generated revenues into the billions of dollars, the industry is fragmented into many small to mid-size firms. With the advent and growth of internet sales, many small to mid-size firms are faced with the need for additional capital and technology – while at the same time facing increased internet competition and declining revenues. Concurrently, a small number of larger online ticket companies continue to experience growing market shares and revenues," the letter, obtained by TicketNews stated
"Commerce Holdings, Inc. is a fully reporting public company structured for the sole purpose of consolidation of the ticket brokerage industry via acquisition and roll-up of compatible private ticket brokerage firms into an SEC registered company."
The company in question, Commerce Holdings, was formerly known as Lee Fine Arts, Inc has numbered among its executives David Clark, Scott Vining and Perry Johnkeer and was formerly a business that provided consulting services on the use of high technology products and processes to the construction and earthquake retrofit industries. Lee Fine Arts was publicly traded in over the counter bulletin board but was withdrawn after failing to comply with SEC reporting requirements.
A spokesman for the company declined to speak with TicketNews, expressing concern about violating SEC regulations. – CelebrityAccess Staff Writers
