Newly formed ASM Global will operate 310 venues across five continents.
AEG Facilities, the venue management subsidiary of AEG, and SMG, which manages more than 200 venues across Europe, have signed a definitive agreement to merge. This will include convention and exhibition centres in Brisbane, Cairns, Darwin, Kuala Lumpur, Oman, and ICC Sydney, which are managed under AEG’s Australian entity, AEG Ogden.
The merger will create a new, standalone global facility management and venue services company that will operate as ASM Global. The respective companies will each own 50 per cent of ASM Global following the completion of the transaction. The terms of the transaction were not disclosed, but is expected to be completed later this year.
Headquartered in Los Angeles, ASM Global will operate a diversified portfolio of arenas, stadiums, convention centres and performing arts centres, with more than 310 venues across five continents.
Wes Westley, CEO and president of SMG, says the merger is a “major step for our industry”.
“We plan to accelerate innovation by combining our expertise to deliver increased value and offer enhanced capabilities to municipalities and venue owners worldwide,” he says. “At the same time, we expect that this transaction will offer employees at both our corporate headquarters and field operations tremendous new opportunities.”
Following the completion of the transaction, current president of AEG Facilities, Bob Newman, will be named president and CEO of ASM, while Westley will join ASM’s Board of Directors, where he will actively support the merger integration.
Dan Beckerman, president and CEO of AEG, adds: “ASM will offer an impressive array of capabilities that will accelerate the development and deployment of new services and bring diverse business, sports and entertainment experiences to municipalities, partners and fans around the world.”
AEG will retain ownership of its real estate holdings outside of this venture, including its entertainment districts and owned venues in Los Angeles, London, Hamburg and Berlin, as well as its extensive development, sports, music and sponsorship divisions.