Zomato on Wednesday said it will acquire Paytm’s movie and events ticketing business for ₹2,048.4 crore. This will allow the food delivery major to strengthen its “going out” business, while enabling Paytm to focus on its core payments and financial services distribution businesses.. 

In a BSE filing, the two companies said their boards had approved the share purchase and subscription agreement.

In a statement, One 97 Communications Ltd (OCL) said “it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Ltd

“This deal, valued at ₹2,048 crore on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale,” it added.

“ OCL will transfer its entertainment ticketing business to Zomato by transferring the ticketing business to its 100 per cent subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and selling 100 per cent stake in OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively, to Zomato,” it added. 

The transfer will include about 280 existing employees from the entertainment ticketing business.

The transaction value is subject to cash and net working capital adjustments at closing.