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In its second nine-figure maneuver in less than a month, SFX Entertainment has acquired Magicworks Entertainment Inc. in a transaction valued at $100 million.
The move is the latest in a billion dollar-plus shopping spree that has seen the nation's top live entertainment companies come under consolidation, beginning with Delsener-Slater Enterprises nearly two years ago. In July SFX acquired The Marquee Group in a $100 million stock merger (AB, Aug. 3).
The latest deal is a definitive merger agreement that calls for SFX to acquire all outstanding shares of Magicworks for $4 per share in cash. Magicworks manages, produces, presents and merchandises theatrical shows, concerts and other forms of live entertainment, including, "The Magic of David Copperfield," "Evita," the current Janet Jackson tour, and last year's highly successful Fleetwood Mac tour, among others.
It is expected top Magicworks management will stay on with SFX, including Chairman Joe Marsh, Co-chairman and CEO Brad Krassner, and Lee Marshall, president and COO. Like past acquisitions, which combined form a veritable who's who of the live entertainment industry, Magicworks will operate as a wholly owned subsidiary. In its most basic terms, the deal joins real estate with production.
"SFX has acquired a lot of venues, which...