TicketSmarter owner Digital Ally, which supplies video technology to law enforcement agencies, has revealed plans to split into two independent, publicly traded companies.
Upon completion, stockholders will own equity in two businesses – Digital Ally and Kustom Entertainment, which will include TicketSmarter.
The board of directors agreed that splitting the company was the best way forward for each brand.
Digital Ally will continue to provide video solution technology, and will be led by Brody Green who will serve as president from January 1. Green will then serve as chief executive once the spin off has been completed. Digital Ally intends to continue to be listed on the NASDAQ under its current ticket symbol, ‘DGLY’.
Kustom Entertainment will be a multidisciplinary entertainment company, and through its subsidiary TicketSmarter, will offer primary and secondary ticketing products. Kustom Entertainment will also provide event marketing and become a production company for events, festivals and concerts through its Kustom 440 subsidiary.
The board hopes that the business can expand within the sporting and entertainment industries to support its primary ticketing-related opportunities. It is also hoped that the ability to offer venue, ticketing, marketing and production capabilities will make Kustom Entertainment an attractive option for potential partners.
Kustom 440 was formed in mid-2022 and will be able to execute and produce planned events throughout 2023 as production and investment have already started.
Kustom Entertainment will be led by Stanton Ross, who will serve as president and CEO. The company’s shares are expected to be listed on a national exchange under a ticket symbol that will be announced soon.
Current president and CEO Ross said: “This announcement marks a major milestone in the evolution of Digital Ally and its subsidiaries. Over the past 17 years, I have dedicated myself to delivering consistent and differentiated execution, strengthening our business through organic growth and value-creating acquisitions. Having achieved the scale to operate as two market-leading, separate companies, we believe this transaction will unlock substantial value for our stockholders, as each company attracts an investor base tailored to its respective financial and growth profile.”
Ross added: “Importantly, after the separation, both companies will retain the key aspects of Digital Ally’s strong culture and management approach, providing a strong foundation for both companies. I’m excited to unlock the connections and opportunities I have within the entertainment and events industry, which has always been a true passion of mine. Likewise, I am equally excited to see Brody Green take this new role with DGLY and for the opportunities, discipline, and passion he will bring to our growing legacy business.”