EQT to sell its stake in Sportradar to consortium of CPPIB and TCV
- EQT VI to sell its stake in Sportradar, the global leader in understanding and leveraging the power of sports data, to a consortium of CPPIB and TCV in transaction valuing Sportradar at EUR 2.1bn
- During EQT VI’s investment period, Sportradar has grown significantly, both organically and through add-on acquisitions, with continuous innovation and development of its product offering across the value chain as well as expansion into new geographies
- EQT VI will reinvest a portion of the sale proceeds into Sportradar alongside Carsten Koerl, CPPIB, TCV and other minority shareholders
EQT VI has entered into a definitive agreement to sell its 35% stake in Switzerland-based Sportradar AG (“Sportradar” or the “company”) to a consortium consisting of CPPIB (Canada Pension Plan Investment Board) and Silicon Valley-based investor Technology Crossover Ventures (TCV) in transaction valuing Sportradar at EUR 2.1bn (~USD 2.4bn).
Sportradar is the global leader in understanding and leveraging the power of sports data, uniquely positioned at the intersection of sports betting and digital entertainment. Founder and CEO Carsten Koerl will continue to lead the business as CEO and will become controlling shareholder following completion of the transaction.
EQT first invested in Sportradar in 2012 via the EQT Expansion Capital II fund which sold its stake to EQT VI in 2014. During EQT’s investment period Sportradar’s annual sales grew at a compound annual growth rate of more than 40% per year to approximately EUR 300 million during the most recently completed twelve-month period. In the same period, Sportradar increased its headcount by 1,400, a rate of 25% per year.
With the support of EQT, Sportradar expanded and diversified its product offering by adding services such as audiovisual and managed trading services. Additionally, Sportradar entered into exclusive strategic partnerships with all key US sports leagues (NBA, NFL and NHL) as well as UEFA and FIFA, whilst at the same time strengthening its organizational structures and processes.
Sportradar also expanded via several add-on acquisitions and secured a strategic investment by Revolution Growth which led to the formation of dedicated US advisory board comprising Ted Leonsis, Mark Cuban and Michael Jordan. The strong focus on the US market over recent years has positioned Sportradar well to capture the significant growth potential from the opening of the US sports betting market.
Dominik Stein, Partner and Head of the TMT sector team at EQT Partners and Investment Advisor to EQT VI, says: “Sportradar has undergone an extraordinary transformation and is today a true global market leader in the sports data and digital content solutions space. The management team – led by Carsten – has done a fantastic job in driving the business towards the strategic vision that formed the basis for the partnership between Carsten and EQT. We are convinced that CPPIB and TCV will be great partners to drive the strategic agenda for the future and EQT is excited to maintain a minority stake in the company.”
Carsten Koerl, founder and CEO of Sportradar, adds: “Working with EQT over the last six years has been an exciting journey and the tremendous growth of Sportradar is the best testimony for the success of this partnership. EQT has been a great partner supporting Sportradar in its globalization and diversification as well as the development towards the global leader in its market. Now, the management team and I are excited to drive Sportradar to the next level together with CPPIB and TCV and are excited to retain EQT as a minority shareholder in the company.”
The transaction is subject to approval from the relevant authorities and is expected to close in Q4 2018.
Dominik Stein, Partner and Head of the TMT sector team at EQT Partners, Investment Advisor to EQT VI, +49 89 255 499 508
EQT Press office, +46 8 506 55 334, email@example.com
EQT is a leading investment firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.
More info: www.eqtpartners.com
Sportradar is the leading global provider of sports data intelligence. The nexus between sports and entertainment, the company serves leagues, news media, consumer platforms and sports betting operators with deep insights and a suite of strategic solutions to help grow their businesses. Sportradar is the trusted partner of more than 1,000 companies in over 80 countries and serves as the official partner of the NBA, NFL, NHL and NASCAR as well as FIFA and UEFA. It is also the only provider entrusted to work with the US sports leagues in an official capacity to distribute sports data (NBA and NHL) and AV rights (MLB) around the world for betting purposes. The company monitors and delivers insights from more than 400,000 matches annually across 60 sports categories, having developed the industry’s most proficient software while setting new standards for speed and accuracy. With deep industry relationships, Sportradar is not just redefining the sports fan experience; it also safeguards the sports themselves through its Integrity Services division and advocacy for an integrity-driven ecosystem that is fair to partners, players and fans.
More info: www.sportradar.com