Sportradar went public via an IPO on Tuesday at a valuation just under $8 billion, just as the rise of sports betting presents global opportunities.
The company raised $513 million through the IPO, according to CFO Alex Gersh, and an additional $169 million from a concurrent placement with Eldridge Industries, a holding company owned by Los Angeles Dodgers owner Todd Boehly.
“We see a great opportunity to make some acquisitions,” Gersh told Front Office Sports. He added that Sportradar would focus on AI and other technology companies that can improve the value of what it offers to clients, namely in sports betting and fan experiences.
- Sportradar earned $478 million in 2020, with $18 million in net income.
- Revenue grew 42% in the first half of 2021, and the company expects $500 million in annual revenue from Europe, according to Gersh.
- It has 85% market share in the U.S. and 45%-50% market share in Europe, Gersh said.
NBA legend and Charlotte Hornets owner Michael Jordan, Dallas Mavericks’ owner Mark Cuban, and Washington Capitals owner Ted Leonsis are all investors in Sportradar.
The company sees long-term expansion possibilities in India, Brazil, Latin America, and Africa as sports betting grows globally.