Sportradar has announced the acquisition of IMG Arena, a sports betting and data rights firm owned by Endeavor Group.
The deal, which the company announced on its 2024 earnings call on March 19, sees Endeavor pay Sportradar cash for selling IMG Arena.
It represents a strategic refocusing for both companies. The transaction is to be completed later in the year.
IMG Arena's portfolio is 39,000 official data events and 30,000 streaming events, significantly enhancing Sportradar's product portfolio.
The acquisition will further establish Sportradar as a leading player in the sports data market, particularly tennis.
Sportradar will possess the betting rights to three Grand Slam tournaments and assume around 70 global betting rights, including high-profile events such as Wimbledon, the PGA Tour, and the U.S. Open.
The deal's financial setup is peculiar. Endeavor is paying Sportradar $125 million and making up to $100 million in cash distributions to IMG Arena's sports rightsholders. In effect, Endeavor is paying up to $225 million to relinquish its interest in IMG Arena.
An analyst note by Regulus Partners sees the transaction as a response by Endeavor to divest the financial implications of IMG Arena's operations, not one aimed at extracting immediate value from the business.
The note characterized the divestment as a strategic failure, highlighting the company's need to get rid of the rights and possible redundancy costs.
Endeavor brings fluidity to its operations
Endeavor initially listed IMG Arena for sale in August 2024 following Silver Lake's $13 billion private equity buyout. This was part of an overall plan to overhaul its portfolio and dispose of some of its assets. At the same time, the company also listed its sportsbook technology platform, OpenBet, for sale.
A $450 million management buyout (MBO) of OpenBet was scheduled for November 2024. With the transaction, OpenBet CEO Jordan Levin and Endeavor CEO Ariel Emanuel sought to take control of the company via a new holding company, OB Global Holdings.
The takeover would enable OpenBet to continue expanding its market and evolving its products, emphasizing confidence in the brand's future growth.
While the OpenBet sale continues separately, Endeavor continued searching for a buyer for IMG Arena, and a deal with Sportradar followed.
Sportradar CEO Carsten Koerl highlighted the Company's history of achieving returns on investments in global betting rights and stated that the acquisition would further strengthen the company's presence in premier sports such as tennis, basketball, and soccer.
“Given our proven track record of maximizing ROI through our global betting rights deals and our strengthened position across tennis, basketball and soccer, we are confident in our ability to realize the full economic potential of this portfolio,” Koerl said.
With the inclusion of IMG Arena's assets, Sportradar anticipates reaching new growth channels and delivering greater value to partners and investors.
The takeover is part of Sportradar's long-term vision to extend its roots deeper in the sports data and betting sectors based on previous acquisitions, such as its purchase of XLMedia North America's business in 2023 for $30 million.
