Time Out to pay $3 million in stock to acquire YPlan, an event ticketing startup that had raised nearly $40 million

Event ticketing startup YPlan has been acquired by travel publication Time Out in a deal worth £1.6 million ($1.96 million), a figure that will rise to £2.4 million ($2.94 million) after a year if certain terms are met.

Digging down into the details of the acquisition reveals that Time Out won’t be parting with any cash directly — it will be swapping 1,166,644 in ordinary shares, with each share representing a value of £1.393. The deferred £0.8 million will be payable “12 months after completion subject to no warranty claims being made under the sale and purchase agreement.”

Founded out of London in November 2012, YPlan emerged as one of the most popular event-booking apps in the U.K. capital, letting users book tickets on the spot for a myriad of shows that same day. The service later launched in New York in 2013 and San Francisco six months later.

The company had raised around $40 million to date, including a $12 million round in 2013 that saw actor Ashton Kutcher enter the fray. But things started to look grim for the company earlier this year when news emerged it was cutting 30 percent of its workforce as it scaled back its U.S. operations. To have burned close to $40 million, the bulk of which came less than two years ago, is some going and the fact that it couldn’t raise any more cash and chose to sell for next-to-nothing is perhaps a red flag for other tech startups.

Time Out was launched as a London-centric publication in 1968, though it has expanded internationally since then. The company floated earlier this year and raised around £90 million, indicating at the time that it may pursue acquisitions to grow.

“Developing e-commerce and monetizing our audience is an important element of our ambitious growth strategy,” explained Julio Bruno, CEO of Time Out Group. “We acquired YPlan because its advanced technology will significantly accelerate this strategy. It will enable us to offer our large audience more online booking opportunities, whilst improving the user experience.”

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