Is Sportradar Worth $8 Billion Ahead Of Nasdaq IPO?

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Sportradar is aiming to raise more than $600 million from its US IPO, according to new SEC filings published on Tuesday.

The data firm plans to sell 19 million Class A shares on the open market, along with 6 million shares in a private placement.

At an expected price of $25-$28, Radar will raise about $624 million from the process.

How will Sportradar spend IPO cash?

The company said the proceeds would go towards:

Following the transaction, founder and CEO Carsten Koerl will be the only holder of Class B shares which command 10x voting powers. That gives Koerl around 82% of the voting power in the company.

How much is Sportradar worth?

Sportradar will trade on the Nasdaq Global Select Market under the ticker $SRAD.

Per the filing, Sportradar has 296,000 outstanding shares, giving an estimated valuation just over $8 billion. That’s a dropoff from the $10 billion valuation floated when Sportradar was exploring a SPAC transaction.

It is also equivalent to around 20x its 2020 revenues.

For comparison, key rival Genius Sports is currently worth just more than $4 billion.

Sportradar IPO by the numbers

Sportradar revenues for the last six months climbed 42% year-on-year to $322 million. That was broadly in line with the rest of the regulated sports betting market, given the relative absence of sports matches last year.

Adjusted EBITDA in the same period climbed 47% to $71 million, good for an adjusted EBITDA margin of 22%.

Within that, the US sports betting market was loss-making, while more mature markets were “highly profitable.”

Bright future ahead?

Sportradar wrote in the F1 filing:

“We are nimble, innovative and prepared for global growth.”

“In addition to investments in strategic markets like the United States, which we believe will fuel significant growth in our business, we have also invested in new high growth products including programmatic advertising, e-Sports and gaming technology such as virtual sports and simulated sports events. 

“We expect these investments to expand the scope of our value proposition, increase our total addressable market (“TAM”) and drive wallet share with customers.”

Long route to IPO

The Sportradar IPO followed a somewhat circuitous path. The company initially explored a SPAC transaction, even signing a letter of intent with Horizon Acquisition Corp. II.

Sportradar never revealed why that deal fell through. At the time, Bloomberg noted SPAC transactions had become “increasingly difficult to complete.”