The deal is expected to close in the fourth quarter of 2021, subject to regulatory approvals.
- OVG and Spectra will retain their headquarters in LA and Philadelphia, respectively
- Climate Pledge Arena and UBS Arena are among the current partners of OVG
The venue development company Oak View Group (OVG) will merge with the venue management and hospitality provider Spectra to create a full-service company for live events.
The combined company will provide booking and content creation expertise for the venues it manages.
The transaction, the financial terms of which have not been disclosed, is expected to close in the fourth quarter of this year, subject to regulatory approvals and other customary closing conditions.
Upon completion of the transaction, OVG will remain headquartered in Los Angeles while Spectra will continue to be based in Philadelphia.
When announcing the final agreement, the two parties also said they will work to promote sustainability in all business operations by “harnessing the power of the entertainment and sports industries” to initiate positive change.
The current partners of OVG, which was founded in 2015, include the Climate Pledge Arena and the UBS Arena, which is currently under construction, home to the Seattle Kraken of the National Hockey League (NHL) and the New York Islanders, respectively.
OVG is also a partner in the new £ 350 million ($ 482 million) co-op live venue to be built on campus adjacent to Etihad Stadium, home of Manchester City, England. In May, City Football Group (CFG), owner of the Premier League champions, joined OVG as an equal joint venture partner and investor.
Spectra now provides event management, hospitality, and partnership services to 330 customers worldwide, including stadiums, arenas, convention centers, performing arts centers, exhibition centers and casinos.
“This merger brings together two dynamic leaders in the live events industry with complementary capabilities that will provide our customers with a wide range of services,” said Tim Leiweke, CEO of OVG.
“OVG’s core competencies in arena development and corporate sponsorship, coupled with Spectra’s leadership role in food and beverage services, will create a full-service live events company that offers a compelling and extremely competitive range of offerings that will appeal to meets the changing requirements of our customers. “
Dave Scott, Chief Executive of Spectra, added, “This is an exciting development for Spectra and an important step in our journey to deliver unparalleled service to our customers and exciting growth opportunities for our team members as part of a larger, more diverse organization.
“This merger accelerates our existing strategy and will create significant opportunities for cross-selling food, beverage and sponsorship services to our common customer base.”