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Sportradar brings in investors with North American focus

| By iGB Editorial Team
Sportradar has welcomed new North American investors as it bids to expand in the region

Sportradar has taken a huge step towards expanding its business in the North American market by unveiling Canada Pension Plan Investment Board (CPPIB) and Silicon Valley-based growth equity firm TCV as new investors this (Monday) afternoon.

TCV and CPPIB, through its CPP Investment Board Europe subsidiary, will acquire a minority stake in Sportradar, which operates Betradar, a provider of data, content and streaming services to the betting industry.

TCV and CCPIB will acquire the stake from private equity firm EQT and certain minority shareholders, but Sportradar founder and CEO Carsten Koerl will retain control of the company.

The transaction, which is expected to close in the final quarter of 2018, values Sportradar at €2.1bn ($2.4bn).

A Sportradar source told iGamingBusiness.com that the US Supreme Court’s recent decision to overturn a federal ban on sports betting had been a “major motivation” behind the timing of the deal.

However, the source added that Sportradar’s new strategic partners would also help the company to strengthen its position in Europe and Asia, given their areas of expertise.

“CPPIB and TCV are both known for extensive global tech experience and a track record for working alongside innovative management teams to help achieve their long-term vision,” Koerl said.

“Having two new investors with a strong North American footprint is ideal given our increasing focus and expanding operations in the US, as the sports industry evolves to meet the expectations of today’s sports fans. Sportradar will continue to develop best-in-class, integrity and technology- driven services as we expand into new market segments, and we’re excited to have such a strong team behind us.”

Additional existing shareholders include Revolution Growth, Ted Leonsis, Michael Jordan, and Mark Cuban.

Leonsis, Revolution’s co-founder and partner, said: “Sportradar’s vision for how the world will use this data has made them the most influential sports data and information company in the world and they are well-positioned for expansion in the US market given the recent decision by the Supreme Court to legalise sports betting.”

Sportradar serves as the official partner of three of North America’s four established major leagues – basketball’s NBA, American football’s NFL and ice hockey’s NHL.

Other partners include the Nascar North American stock-car racing series, as well as the Fifa and Uefa global and European football governing bodies. Sportradar also distributes audiovisual content for Major League Baseball.

Since EQT’s investment in 2012, Sportradar’s revenue has increased at a rate of approximately 40 per cent annually, through “organic and acquisition-based growth”.

The company now monitors and delivers insights from more than 400,000 matches per year across 60 sports categories.

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