Rizvi Traverse, a private equity firm, appears to be on the verge of acquiring SESAC, according to a filing with the SEC.
On Dec. 11, Rizvi Traverse’s Rizvi Opportunistic Equity Fund II, L.P. filed for an early termination notice from a Hart-Scott-Rodino anti-trust review with the Federal Trade Commission. Such filings are made after a pre-merger notification is filed with the FTC for transactions valued at $68.2 million or larger, which alerts the FTC or the Justice Department’s Antitrust Division of a pending transaction that may require an Hart-Scott-Rodino review.
While such filings don’t show transaction specifics to the public, a source says that Rizvi Traverse would acquire SESAC in a transaction that could close before the end of the year.
Early termination notices can be granted only after such a review has can be completed and either the Federal Trade Commission and/or the Justice Dept. Department have determined not to take any enforcement action during the waiting period.
According to sources, SESAC, the Society of European Stage Authors & Composers, reported $42 million in earnings before interest, taxes, depreciation, and amortization on revenues of $128 million in its most recent fiscal year.
SESAC has been owned by investor Stephen Swid, Allen & Co, entertainment lawyer Freddie Gershon, and Ira Smith since 1992. SESAC and Rizvi Traverse couldn’t be reached for comment at press time.