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Sportradar Files for US IPO After SPAC Merger Plans Collapse
By Jeff Osienya Aug 18, 2021 IndustrySwiss-based sports data giant, Sportradar, files an IPO statement with the SEC after its plan to merge with the Horizon Acquisition Corp II fell apart a little over two months ago. The company is gearing up for expansion in the budding US market.Sportradar Group AG, the famed sports data provider, backed by Canada’s Pension Plan Investment Board, has filed paperwork with the United States Securities and Exchange Commission (SEC) for an initial public offering (IPO). Sportradar’s move comes just ten weeks after unsuccessful talks for a $10 billion merger with Horizon Acquisition Corp II, a blank check company or special purpose acquisition company (SPAC), co-founded by LA Dodgers Todd Boehly.
Based in St. Gallen, Switzerland, Sportradar filled form F – 1 with the SEC on Tuesday, August 18th with the US SEC, listing the size of its IPO as $100 million according to the latest reports by IGB. However, from what analysts are saying, the $100 million figure is likely a placeholder and is expected to change as the company continues to woo investors. Upon completion of the IPO, Sportradar will make its debut on the Nasdaq Global Select Market exchange with SRAD as its ticker symbol.
Carsten Koerl, the Sportradar Chief Executive Officer, penned a letter to potential investors along with the SEC filing. The letter reads in part:
Quote“Data and technology have never been more valuable to the sports and entertainment ecosystem. We’re grateful to all of our customers who choose Sportradar to power their offerings. We’re humbled to play a part in helping them grow and are committed to innovating alongside them. We are also honored to partner with some of the biggest sports leagues around the world to help them understand and harness the power of their own data.”
Koerl also underscored the importance of sports data, especially at a time where more customers continue to embrace live betting. He further touched on the company’s fight for sports integrity, saying:
Quote“Since the founding of our business, we have always cared deeply about the integrity and fairness of competition. We partner with leagues and sports around the world to advance our vision of fair and transparent competition. Our latest innovation in this sector is a revolutionizing analytical system to support anti-doping agencies globally.”
Sportradar Recorded a Shining Performance in 2020 Despite the Pandemic
Per the SEC filing, Sportradar won a total of €404.9 million last year, even as the Coronavirus pandemic shook the US sports betting market to its core. This is a 6.4% year-over-year jump compared to 2019’s performance. This stellar showing makes Sportradar the world’s largest provider of sports betting solutions.
Sports betting and audio-visual services in the United States accounted for €34.4 million Of the €404.9 million win, whereas €235.0 million was accrued from betting from other parts of the globe. Finally, the remaining €105.9 million revenue was secured from audio-visual services across other regions outside the US.
Moreover, the company spent €121.3 million in personnel costs, €89.3 million to acquire services and licenses, and €41.3 million to cater for other operating expenses. Additionally, €35.2 million went to pay for impairment charges, whereas the depreciation and amortization cost Sportradar a total of €16.2 million. Overall, before taxes, the sports data company racked up €22.1 million in profits, with the figure reducing to €14.8 million after taxes.
Looking at H1 2021, the Swiss-based company has seen €272.1 million worth of revenue, which is a 42% surge compared to the same period last year. €28.9 million of the revenue was generated by the US market. As of June 30th, 2021, the company has assets valued at €1.01 billion, mainly composed of license rights for major sports events – €201.7 million less than its asset volume on December 31st last year. Meanwhile, the company’s liabilities stand at €799.6 million.
Betting Big on the Burgeoning USA Market
Genius Sports recently lost its lucrative collaboration with the NFL as the official data supplier to Genius Sports, which successfully secured a spot on the New York Stock Exchange (NYSE) earlier in April. Unlike Sportradar, Genius Sports fruitfully negotiated a merger agreement with a SPAC going by dMY II.
With the IPO SEC filing, Sportradar is sending a message that it will keep fighting for an even bigger slice of the pie in the USA’s rapidly growing gaming industry. In the letter to potential investors, the company CEO also reiterated Sportradar’s resolve to improve its offerings in a bid to cement its position in the US market. He said:
Quote“Sitting here today, I see numerous opportunities for growth, especially as new sports betting markets such as the US accelerate, and our customers turn to us for new products and continued innovation. We are living in a transformational time. At Sportradar, we are focused on constantly improving our company and its services. Machine learning and artificial intelligence, in particular, will help us to get brand new insights around team and player performance. Cloud computing gives us the GPU power, combined with low latency connections to all our clients around the world, to serve the next generation of analytical and entertainment products.”
UBS Investment Bank, Citigroup, Morgan Stanley, and J.P. Morgan will be the lead managers running books in the IPO. The foursome will be assisted by Canaccord Genuity, Jefferies, Deutsche Bank Securities, and Bank of America Securities.
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