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This is a developing story and will be updated.
Sports data company Sportradar — a company that will likely be at the center of the legal US sports betting market — is now valued at $2.4 billion after announcing a pair of strategic investors.
Sportradar announced that two companies — Canada Pension Plan Investment Board (CPPIB) and Silicon Valley-based growth equity firm TCV — had acquired a stake. That position came from purchasing the stakes of private equity firm EQT and “certain minority shareholders,” according to Sportradar.
The transaction is expected to close in Q4.
Interestingly, KKR was one of the companies that was in the running to become a minority shareholder in Sportradar. KKR recently led a sale of daily fantasy sports company FanDuel to Paddy Power Betfair, a deal that has not yet closed.
EQT will also reinvest a portion of its sale proceeds into Sportradar, the company reported. Additional existing shareholders include Washington Capitals and Wizards owner Ted Leonsis, former NBA superstar Michael Jordan and Dallas Mavericks owner Mark Cuban. The New York Times recently reported on the company’s past involvement in at least one sportsbook that served the US market illegally.
“CPPIB and TCV are both known for extensive global tech experience and a track record for working alongside innovative management teams to help achieve their long-term vision,” said Carsten Koerl, CEO of Sportradar, in a press release. “Having two new investors with a strong North American footprint is ideal given our increasing focus and expanding operations in the U.S., as the sports industry evolves to meet the expectations of today’s sports fans. Sportradar will continue to develop best-in-class, integrity and technology-driven services as we expand into new market segments, and we’re excited to have such a strong team behind us.”
Sportradar works with pro sports leagues, media platforms and betting operators to provide data among all of them. It is the official data partner of the NBA, NFL, NHL, NASCAR and FIFA. It distributes betting data for both the NBA and NHL.
The position of the company obviously became even more attractive as the US Supreme Court struck down the federal ban on sports gambling outside of Nevada.
“The sports data market, particularly real-time data, is a compelling long-term investment opportunity, with strong growth driven by rising fan engagement, opening of new markets and increasing spend on digital sports content globally,” said Ryan Selwood, Managing Director, Head of Direct Private Equity for CPPIB. “We are excited to partner with Carsten and look forward to supporting his innovative vision for Sportradar by further investing into artificial intelligence and global expansion.”