Sportradar Prices IPO At US$7.4 Billion Valuation
portradar sports data company CEO Carsten Koerl is set to be a multibillionaire as Sportradar has priced its IPO as a $7.4 billion (AUD 10.2 billion) valuation.
According to the company’s prospectus, Sportradar posted a near $18 million (AUD 24 million) net profit on $478 million (AUD 661.1 million) in revenue last year.
In March, Sportradar had a deal in place to merge with Horizon II, a SPAC owned by Boehly, which would have valued Sportradar at $10 million (AUD 13.8 million); however, after a delay in bridge financing it caused the deal to fall through, Sportradar then changed course and filed for a traditional IPO in August which will see the company trade under “SRAD”.
Over the last 18 months, the sports world was brought to a halt due to the current pandemic; the Sportradar Group proposed a $10 billion (13.8 billion) SPAC deal to take the company public, unfortunately, fell through as rivals Genius Sports secured the NFL as an official partner.
Despite losing the NFL’s data rights licence to Genius Sports, the NFL still retains an equity stake of less than 5% in Sportradar.
Sportradar has established partnerships with the NBA, MLB, NHL and Nascar as the NHL also received equity options for Sportradar’s IPO as part of the deal, according to Sportico
Sportradar’s media and gambling partners include Facebook, Google, FanDuel, DraftKings, William Hill, and also provides services for organisations such as the Union of European Football Association (UEFA) and the German Bundesliga.
U.S Securities and Exchange Commission reported that Sportradar has plans to sell $19 million (AUD 26.2 million) shares and an additional $2.65 million (AUD 3.69 million) held under option at $25-$28 million (AUD 35.5- 38.7 million) in its public offering.
Sportradar also plans to sell a $159 million (AUD 219.8 million) stake to an investment group led by Los Angeles Dodgers part-owner Todd Boehly’s Eldridge Industries.
Recently, Todd Boehly tried to buy into Sportsradar through a SPAC.
On the low end of its pricing, Sportsradar could raise $546 million (AUD 754.9 million), valuing the company at $7.4 billion (AUD 10.2 billion).
In a Forbes estimate, Koerl’s 31.8% stake in Sportsradar could be roughly worth $2.3 billion (AUD 3.1 billion).
Studying electronic and microprocessor engineering at the University of Applied Science in Germany, Koerl held several management roles in the software and gaming industry before founding an online gambling company, bwin, in 1997.
Later in 2001, Koerl formed Sportradar by buying 51% of a developing Norwegian sport betting odds and data company, Market Monitor AS, which has since expanded globally.
In 2018, Silicon Valley investment firm TCV and the Canada Pension Plan Investment Board bought a reported 37% stake in Sportradar, valuing the company at $2.5 billion (AUD 3.4 billion) (including debt).