Sportradar has entered into an agreement with Endeavor Group to acquire IMG ARENA and its global sports betting rights portfolio.
IMG ARENA’s portfolio of betting rights will enhance Sportradar’s content and product offering, and further strengthens its position as a leading content provider for global sports such as tennis, soccer and basketball.
Upon closing, the acquisition will be immediately accretive to Sportradar’s adjusted EBITDA margins, aligning with disciplined investment approach, and further accelerates Sportradar’s revenue, adjusted EBITDA and cash flow growth.
Sportradar will not be required to pay any financial consideration, with the transaction providing financial consideration of $225 million, comprised of $125 million paid to Sportradar and up to $100 million cash prepayments made by Endeavor to certain of the sports rightsholders.
“Sportradar’s success is driven by the breadth of its sports coverage, its broad product portfolio and leading technology, and its global distribution network,” said Sportradar CEO Carsten Koerl. “Given our proven track record of maximizing ROI through our global betting rights deals and our strengthened position across tennis, basketball and soccer, we are confident in our ability to realize the full economic potential of this portfolio.
“In addition, the unique structure of this transaction accelerates our revenue and cash flow profile and will be immediately accretive to our margins. The addition of these strategic rights will unlock new growth opportunities, enabling us to deliver exceptional value to our partners, clients and shareholders.”
The portfolio of global betting rights comprises strategic relationships with over 70 rightsholders covering approximately 39,000 official data events and 30,000 streaming events across 14 global sports on six continents.
Prominent global properties include Wimbledon, US Open, Roland-Garros, Major League Soccer, EuroLeague basketball and PGA Tour. Combined with existing tennis rights, Sportradar will now hold betting rights to three of the four Grand Slams.
The transaction is currently expected to close in the fourth quarter, subject to receipt of regulatory approvals and satisfaction of closing conditions.
UBS Swiss Financial Advisors is acting as exclusive financial advisor and Brandl Talos served as transaction counsel to Sportradar.
Shares in Sportradar Group AG (NASDAQ:SRAD) closed 1.38 per cent lower at $20.08 per share in New York Tuesday, and gained 2.59 per cent in $20.60 in pre-market ahead of today’s announcements, which include the company’s full year financial results.