SFX to Acquire Magicworks Entertainment

SFX Entertainment Inc., the nation’s No. 1 producer of live music, theater and sporting events, agreed to buy Magicworks Entertainment Inc. for $100 million in cash to add to its entertainment and sports marketing business. New York-based SFX said it will pay $4 a share for Miami-based Magicworks, which got its start producing and promoting events such as “The Magic of David Copperfield.” In addition to bolstering its holdings in live entertainment, such as theatrical tours and concerts, the purchase would expand SFX’s business of representing and providing marketing services to professional athletes. The deal would also open seven new geographic markets for SFX, including Salt Lake City. Magicworks had 1997 revenue of $63.9 million. The move is the latest in SFX Chairman Robert F.X. Sillerman’s string of purchases. The boards of both companies have approved the transaction. Magicworks shares rose 38 cents to close at $3.94 on the American Stock Exchange; SFX shares rose 56 cents to $40.44 on Nasdaq.