Backdoor Listing of Sportradar, the Sports Data Analysis Company Sports Betting Market is Picking Up Steam
BREAKING: Per source, @Sportradar comes to agreement for reverse merger that would allow data provider to go public. The company was recently valued at $10 billion. #SPACs— Sports Handle (@sports_handle) March 2, 2021
According to a news report released by Sportico, the sports data analysis company Sportradar is about to merge with the Special Purpose Acquisition Company (SPAC) Horizon Acquisition Corp. This company has valued Sportradar at US$ 10 billion and submitted all required documents to the US Securities and Exchange Commission on March 10.
Sportradar, which was founded in 2001, specializes in the provision of data and analysis services for large-scale sports competitions. The Company creates mathematical models to generate projected sports betting odds. It sells these odd suggestions to platforms of the sports betting industry to assist them in creating their own odds.
Sportradar partners with the top four North American sports leagues NFL, NHL, NBA, and MLB as well as official sports tournaments organized by ITF (International Tennis Federation), FIFA (International Federation of Association Football), and NASCAR (National Association for Stock Car Auto Racing). The company has established a presence in over 80 countries and regions and cooperates with over 1000 partners. Its main investors include Mark Cuban, owner of the Dallas Mavericks, Ted Leonsis, owner of the Washington Wizards, and the basketball legend Michael Jordan, who is the owner of the Charlotte Hornets.
Horizon Acquisition Corp. II is a SPAC run by Chairman and CEO Todd Boehly, a shareholder of the LA Dodgers. In October 2020, the company raised US$ 525 million through its IPO (Initial Public Offering). It has also stated its intention to search for target businesses in related fields. Sportradar fully meets the company’s expectations as an ideal investment target in the industry.
Industry pundits argue that the public listing of Sportradar was a direct response to its main competitor Genius Sports Group, which also realized its backdoor listing on the New York Stock Exchange through cooperation with a SPAC in October 2020. Genius Sports Group has been valued at US$ 1.5 billion. DraftKings, another sports betting operator, was also publicly listed after merging with a SPAC. DraftKings CEO Jason Robins is a board member of Horizon Acquisition Corp. II.
A Bloomberg report reveals that Horizon’s stock price rose by 28%, hitting a historic high of US$ 12.16, after its merger with Sportradar became public last week. This also clearly indicates that the market has a favorable view of the future development of Sportradar and sports betting in general.