Sportradar is acquiring IMG Arena’s sports betting rights portfolio from Endeavor in a $225 million transaction, further strengthening its position in global sports data and betting.
The deal, announced Wednesday, marks another divestment for Endeavor as it prepares to go private.
Under the terms of the deal, Endeavor will pay Sportradar $125 million, with an additional $100 million going toward cash prepayments for various rights holders. Sportradar will not be required to make a cash payment for the acquisition. The transaction is expected to close in the fourth quarter of 2025, pending regulatory approvals.
The sale was announced as Sportradar reported strong fourth-quarter earnings with total revenue of €307 million for the quarter, a 22% increase year over year, driven by growth across its sports betting technology, streaming services, and media partnerships. Full-year revenue for 2024 reached €1.1 billion, up 26% from 2023.
SRAD jumps on news
Sportradar’s stock price climbed 11.2% Wednesday to close at $22.80. Volume was more than four times its daily average at 4.1 million.
Steven Pizzella of Morgan Stanley raised his SRAD target to $27 and maintained his buy rating following the acquisition and improved estimates after earnings.
“Overall, we continue to believe SRAD gives investors, who are interested in gaining long-term exposure to the rapidly growing sports betting industry, a pure-play way to get leverage to the theme, through a profitable and majority subscription-based (~70% of revenue), B2B operating model,” Pizzella said.
Sportradar expands betting rights portfolio
The acquisition brings major sports betting rights under Sportradar’s control, including three of the four Grand Slam tennis tournaments — Wimbledon, the US Open, and Roland Garros — alongside rights to Major League Soccer, EuroLeague basketball, and the PGA Tour.
Sportradar believes integrating IMG Arena’s rights will enhance its scalability, deepen its product offerings, and create additional value for clients and partners. Basketball, soccer, and tennis collectively account for roughly 70% of Sportradar’s existing data rights, and the company expects the expanded portfolio to accelerate revenue growth and improve its adjusted EBITDA margins.
In a statement, Sportradar CEO Carsten Koerl said the deal aligns with the company’s strategy to expand its presence in key global sports and improve financial performance.
“Sportradar’s success is driven by the breadth of its sports coverage, a broad product portfolio, the leading technology, and a global distribution network,” Koerl said. “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.”
Financial and strategic implications
Sportradar stated that the acquisition is expected to be immediately accretive to adjusted EBITDA and free cash flow growth. The structure of the deal allows financial benefit without the need to make direct cash payments, as the prepayments will be used to align existing rights deals with market conditions.
The move also reinforces Sportradar’s ongoing push into in-play and micro-betting markets. The company has recently expanded its offerings in ATP tennis and NBA betting, leveraging AI-driven technologies to provide sportsbooks and media partners with deeper insights and interactive betting experiences.
Strong Q4 performance and growth outlook
Adjusted EBITDA for the quarter rose 53% year over year to €61 million, reflecting improved operating leverage and expansion in high-margin products. The company highlighted the performance of its managed trading services, which handled €35 billion in turnover with a 10.7% margin, reinforcing Sportradar’s position as a key provider of sportsbook trading and risk management solutions.
Sportradar also reported strong growth in its US business, which now accounts for 24% of total revenue, up 5 percentage points from the previous year. With sports betting continuing to expand in international markets, the company expects multiyear margin expansion and significant cash flow generation, further enhanced by the IMG Arena acquisition.
Regulatory approvals still needed
The acquisition is not expected to significantly alter Sportradar’s market share in the US. Regulatory approvals in other jurisdictions, including the UK, may be required before the deal closes.
Selling IMG Arena comes after Endeavor’s $450 million divestiture of OpenBet in November, as the company restructures ahead of going private. The deal marks another step in its strategy to streamline operations and exit certain non-core assets.
Sportradar will provide further details on the acquisition during its earnings call and upcoming Investor Day on April 1.
