AEG and Onex have commented on the completion of Legends’ $2.325 billion acquisition of ASM Global.

Los Angeles-headquartered ASM was formed in 2019 following a merger between AEG Facilities and Onex’s SMG. The equity holders agreed to sell their ownership interests in the venue management company as part of the agreement with Legends, which was announced in November last year, with ASM continuing to serve existing and in-development AEG venues.

“This transaction is the culmination of our vision to drive ASM’s growth and unlock substantial business value in the company,” says Dan Beckerman, president, and CEO of AEG. “This milestone will allow us to focus on the continued growth of AEG’s core businesses, including our owned and operated real estate and venues, and our live entertainment and ticketing business.”

The operator of buildings including Las Vegas’ Allegiant Stadium, ICC Sydney Convention Center, Avicii Arena in Stockholm, OVO Arena Wembley, Coca-Cola Arena in Dubai, ASM Global will continue to operate under its name “for the time being” in the wake of the deal.

“We are confident Legends will deliver continued growth and differentiated services to its clients around the globe in the years ahead”

“We are pleased to complete our investment in ASM after having partnered with its management team and with AEG to expand the business, successfully navigate the pandemic and position it for future success,” add Kosty Gilis and Amir Motamedi, MDs at Onex Partners. “We are confident Legends will deliver continued growth and differentiated services to its clients around the globe in the years ahead.”

Confirming the closing of the ASM deal on Friday, Sixth-Street global premium experiences giant Legends says the acquisition has created “the world’s preeminent premium live events company”. The combined firm plans to provide a “data-driven, customisable solution across all areas of venue operations and revenue generation”.

“Over the course of 15 years, we have developed an unmatched solution to deliver a superior fan experience and help our partners grow,” said Legends CEO Dan Levy. “We are proud to add ASM Global to deliver even better experiences and value for our global partners, setting the standard in sports and entertainment.”

Legends’ existing clients include Real Madrid, SoFi Stadium, Dallas Cowboys, FC Barcelona, New York Yankees, and Ryder Cup, as well as the NFL, MLB, NASCAR, PGA of America and FIFA World Cup, while its expanded geographic reach will now support partners across Africa, Asia, Europe, Oceania, and North and South America.

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Legends’ blockbuster acquisition of ASM Global promises to usher in a new era in the venue management sector as the company battles for international market supremacy with Oak View Group.

The reputed $2.4 billion deal to create a premium global live events company was announced yesterday (7 November).

Launched four years ago following a merger between arena operators AEG Facilities and Onex’s SMG, ASM operates buildings including ICC Sydney Convention Center, Avicii Arena in Stockholm, OVO Arena Wembley, Coca-Cola Arena in Dubai, Brooklyn’s Barclays Center and State Farm Stadium in Glendale, Arizona.

Current ASM Global equity holders AEG and Ondex will sell their ownership interests as part of the agreement, while ASM will continue to serve existing and in-development AEG venues.

“[The] announcement is the culmination of the journey AEG and Onex embarked on in early 2019 when we completed the merger of AEG Facilities and SMG to form ASM Global,” says Dan Beckerman, president and CEO of AEG. “Our purpose has been clear from the start – to drive ASM’s growth and create significant value for ASM and its clients. Despite the tremendous impact of the pandemic, we were able to unlock substantial business value over the past four years with ASM growing both its revenues and global portfolio.”

AEG-owned venues including The O2 in London, AccorHotel Arena in Paris, Germany’s Barclays Arena in Hamburg and Mercedes-Benz Arena Berlin and Los Angeles’ Crypto.com Arena will remain under AEG control.

“While we will no longer be an owner in ASM, we look forward to continuing to work with the company and its talented leadership team”

“This transaction will allow us to focus on the continued growth of AEG’s core businesses, including our owned and operated real estate and venues and our live entertainment and ticketing business,” says Ted Fikre, vice chairman and chief legal and development officer of AEG. “AEG has enjoyed our successful partnership with Onex and, while we will no longer be an owner in ASM, we look forward to continuing to work with the company and its talented leadership team as they pursue ongoing success under the stewardship of Legends as the new owner.”

The transaction, which is subject to regulatory approvals, is targeted to close in 2024.

“We are extremely grateful to the entire ASM leadership team for their unwavering dedication to positioning the business for success, in particular during the unparalleled operating environment they faced during the pandemic, which has allowed ASM to recover so strongly and have great long-term prospects,” says Kosty Gilis, MD at Onex Partners. “We would also like to thank AEG who have been wonderful partners consistent with their impeccable reputation in the marketplace.”

Founded in 2008, Sixth Street-backed premium experiences specialist Legends provides venue planning and project management, premium sales, sponsorship, hospitality and merchandise services. Its clients include prestigious brands such as Real Madrid, SoFi Stadium, Dallas Cowboys, FC Barcelona, New York Yankees, and Ryder Cup, as well as the NFL, MLB, NASCAR, PGA of America and FIFA World Cup.

“We believe ASM is being acquired by an outstanding company in Legends who will take the business to new heights,” adds Amir Motamedi, MD at Onex Partners. “We wish them much success in the coming years as they continue to grow the business and serve customers globally.”

“I always remind our folks, stay focused on us”

Legends says the ASM deal will enhance its services portfolio, positioning it to “meet the expanding needs” of sports organisations, venues and attractions around the globe, while “supporting its vision to deliver exceptional live experiences for fans in the digital age”.

The experiences and hospitality realms are increasing priorities for the sector. Fellow venue giant Oak View Group (OVG), which was founded in 2015 by former AEG CEO Tim Leiweke and ex-Live Nation chairman Irving Azoff, oversees the operations of new venues such as Climate Pledge Arena at Seattle Center, UBS Arena in Belmont Park, New York, and Moody Center in Austin, Texas, and Acrisure Arena in Palm Springs, California, as well as the Co-op Live development in Manchester, UK.

OVG upped its offering with its acquisitions of Philadelphia-based venue management firm Spectra and Rhubarb Hospitality Collection.

OVG boss Leiweke attempted to play down the rivalry between the two behemoths in an appearance on The Bob Leftsetz Podcast earlier this year.

“I always remind our folks, stay focused on us,” said Leiweke. “We’re the greatest asset we have and we’re our own worst enemies. So stay focused on us. We’re going to be great, not because ASM is bad. We’re going to be great because OVG is going to excel.”

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ASM Global will be the venue management provider for a new £260 million arena, conference and exhibition centre on Gateshead Quays in Newcastle, as the operator further expands its UK footprint.

ASM Global, the result of a merger between SMG Facilities and AEG Facilities today  (11 October) cleared by the UK’s Competitions and Markets Authority, has signed a long-term agreement with developer Ask Real Estate and investor Patrizia to operate the 12,500-capacity venue.

It is estimated that the ten-acre Gateshead complex, due to open by 2023, will generate £30m for the economy and attract up to 300,000 new visitors to the region each year. Global architecture firm Hok has been appointed to design to new arena.

“We are thrilled to have selected ASM Global as our operator,” comments Ask Real Estate MD John Hughes.

“ASM Global have a global reputation for excellence and their experience will be key in helping us to develop what will be one of Europe’s key cultural locations”

“They have a global reputation for excellence and their experience will be key in helping us to develop what will be one of Europe’s key cultural locations. We have been working closely with them to ensure the arena will be able to accommodate the rapid advances in sound and production technology.”

ASM Global’s executive vice president for Europe, John Sharkey, says the operator is “delighted to bring to market such an ambitious development”.

“We look forward to building upon the success of the Utilita Arena (11,400-cap.) and Whitley Bay Playhouse (630-cap.), and leveraging our regional strength to further develop the events landscape and grow the north east economy,” says Sharkey.

In addition to its venues in the north east of England, ASM Global’s UK portfolio includes the O2 Arena (20,000-cap.), the SSE Arena, Wembley (12,500-cap.), Manchester Arena (21,000-cap.), the First Direct Arena in Leeds (13,700-cap.), Glasgow’s SSE Hydro Arena (13,000-cap.) and the York Barbican (1,900-cap.).

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AEG’s venue management arm, AEG Facilities, and Onex-owned SMG announced today (1 October) that they have completed their merger to create a single global facility management and venue services company, ASM Global.

The companies, which between them operate and run many of the world’s most important large entertainment venues, first announced their intention to merge in February. The completion of the merger comes following the UK’s Competition and Markets Authority approval of the deal in September.

ASM, headquartered in Los Angeles, has key operations based in West Conshohocken, Pennsylvania, as well as offices in London and Manchester, England; Brisbane, Australia; and Sao Paulo, Brazil.

ASM’s portfolio includes Sydney ANZ Stadium, the Mercedes-Benz Superdome in New Orleans, Brooklyn’s Barclays Center, Dubai’s Coca-Cola Arena, Manchester Arena and Lausanne’s Vaudoise Arena, as well as convention and exhibition centres, performing arts centres and theatres. Overall, the company will operate more than 300 facilities across five continents.

Some AEG-owned venues, including the O2 Arena in London and the AccorHotel Arena in Paris, remain under AEG control do not currently feature in the ASM portfolio online. The Mercedes-Benz Arena in Berlin and Los Angeles’ Staples Center, which were previously thought to be excluded from the deal, are included in ASM’s portfolio.

Bob Newman, former president of AEG Facilities, has been named president and CEO of ASM, effective immediately. Prior to joining AEG Facilities, Newman spent more than 20 years at SMG, last serving as a regional vice president for the company. Wes Westley, former CEO and president of SMG, will focus on strategic growth initiatives and facilitating the integration process.

“This marks the beginning of an exciting new chapter in our industry and one that will establish a new standard of excellence in managing live experiences”

“This marks the beginning of an exciting new chapter in our industry and one that will establish a new standard of excellence in managing live experiences,” comments Newman.

“Bringing together the combined global expertise of each company with the best content and cutting-edge technologies, we will be able to realise the full potential of the world’s greatest spaces, places and events, create amazing experiences for guests, offer exciting new opportunities to employees and deliver the highest value for all stakeholders. Equally important, our deep bench of talent and shared resources will enable ASM to accelerate innovation and capitalise on the growing market opportunities.”

Westley adds: “I am very proud to have had the opportunity to lead such an incredible organisation as SMG. We have a long history of working closely with our public and private partners and are confident in our ability to continue to meet and exceed their expectations.

“ASM’s focus moving forward will be on providing added value and best-in-class services to its customers.”

Onex, AEG and their respective affiliates are contributing their entire equity investments in SMG and AEG Facilities, respectively, and are now equal co-owners of ASM.

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Leading venue management company SMG Holdings, which has been up for sale since at least November, is to be acquired by Onex Corporation in partnership with SMG’s existing management, the Toronto-based private-equity firm announced today.

The deal puts to bed rumours of Live Nation’s interest in SMG, which manages hundreds of arenas, stadia, theatres, amphitheatres and convention centres globally, including many of the UK’s leading large venues through its Manchester Arena-based European subsidiary, SMG Europe.

Terms were not disclosed, although the company says the investment will come from Onex Partners IV, a US$5.7 billion fund. The transaction is expected to close in early 2018, pending regulatory approval.

“Onex values the deep relationships our general managers have cultivated within the municipalities we serve”

SMG is currently owned by Ares Capital’s Northlane Capital Partners, which was spun out of American Capital in January.

“Onex values the deep relationships our general managers have cultivated within the municipalities we serve, and its ownership mentality and long-term focus make it an ideal partner for us,” says Wes Westley, CEO of SMG. “On behalf of the SMG management team, I look forward to working with Onex as we enter this next chapter of continued growth and success.”

“SMG is the global gold standard in venue management,” adds Amir Motamedi, managing director of Onex. “We’re excited to work with Wes, his management team and the general managers within each of SMG’s venues to continue to provide the same world class service their clients have come to expect.”

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