Affinity may be ticket for TEG

Ticketek issues issues 28 million tickets annually.

Affinity Equity Partners is believed to be closer to the sale of its ticketing business TEG, which operates the event ticketing company Ticketek.

Goldman Sachs has had the business on the market for some time, but now the thinking is that the operation will be purchased by US-based private equity firm Silver Lake Partners.

The attraction for California-based Silver Lake is said to be the opportunity to acquire TEG, along with a US-based rival called StubHub that is currently on the market. Strong synergies through bringing the businesses together are thought to exist.

When TEG was on the market almost two years ago, price expectations were believed to be about $1.2bn. Investment bank Goldman Sachs has been selling TEG for Affinity.

TEG describes itself as a ticketing, live entertainment and data analytics company and a market leader in the sports and entertainment industry. As well as events promotion, TEG has Ticketek — which issues 28 million tickets annually and has a membership database of at least 10 million — along with ticketing business Eventopia.

The likely sale comes as bids for the education equipment provider Modern Star are due in a couple of weeks. Expectations are that the sales process will attract a select group of buyers.

This is at a time that the company generates a sizeable amount of its revenue through the Chinese market.

The thinking is that some parties could form a consortium to buy the business, with groups that have China expertise teaming up with Australian-focused buyout funds.

The group generates $60m in annual earnings before interest, tax, depreciation and amortisation and is advised by Luminis Partners and Morgan Stanley.