Secondary market distribution firm DTI Management has purchased an inventory management and PDF delivery software company, its first major acquisition since securing a $75 million investment.
On Thursday, DTI Founder and CEO Curtis Cheng announced the purchase of 1Ticket, a six-year-old Bethesda, Maryland-based company that helps brokers automate their businesses and integrate ticket delivery with POS systems and online resale markets. DTI will operate 1Ticket as a standalone company and integrate 1Ticket into the DTI platform. 1Ticket processed 90% of DTI’s PDF transactions last year.
“We thought it was best for our brokers, our members, and the community as a whole for us to acquire them and integrate them into our company,” Cheng told Amplify. “We are a broker-friendly organization and hopefully this acquisition and our affiliated retail outlet program can turn around the uncertainty within the broker community.”
Cheng explained how the integration would work, telling Amplify, “if a broker is buying tickets for an event, 1Ticket will go into the account that the broker bought from, whatever primary ticketing system he uses, extract that data and PDF and attach it to the broker’s point of sale,” he said. “In this case, the point of sale on record is DTI. After the PDF and data gets ingested into the POS, 1Ticket also manages all the listings and fulfillment for all the relative points of sale.”
The acquisition follows an investment in DTI by CVC Capital Partners and New Amsterdam Growth Capital in October and Cheng said that DTI has already hired a new Chief Technology Officer, a new Head of Product and multiple project managers and data analysts.
The investment comes as the secondary market continues to consolidate and squeeze independent brokers who have been operating in the space for years.
“As the industry’s consolidating, teams, promoters, and even artists are consolidating inventory and as that consolidation continues to happen, brokers will have less supply they can buy and acquire on the open marketplace,” Cheng said. “DTI’s model has always been sharing. When DTI consolidates inventory with teams, we syndicate the entire financial piece of it to our membership group. If you’re a broker of DTI, you are able to then take a position through DTI’s deal to reap rewards if the team does well.”
1Ticket team co-founder Jason Knieriem and his staff will stay on with the company and assist DTI with upgrades to its ticket distribution platform. Combined, the two companies now have more than 100 employees in the aggregate.
“1Ticket has been integrated with DTI since the DTI platform launched in 2012,” Knieriem said in a statement. “Joining DTI was the logical step to provide 1Ticket with the capital and resources needed to offer better technology and more innovative products to our clients—no matter which platform they use.”