Sportradar Announces Agreement to Acquire IMG ARENA and Its Strategic Portfolio of Global Sports Betting Rights

Core Viewpoint - Sportradar Group AG has entered into a definitive agreement to acquire IMG ARENA and its global sports betting rights portfolio, which is expected to enhance the company's offerings in key sports and accelerate revenue and cash flow growth [1][5]. Group 1: Acquisition Details - The acquisition will add strategic relationships with over 70 rightsholders, covering approximately 39,000 official data events and 30,000 streaming events across 14 global sports [3]. - The portfolio includes prominent global properties such as Wimbledon, U.S. Open, and Major League Soccer, enhancing Sportradar's existing rights in tennis, basketball, and soccer [3][7]. - The transaction structure allows Sportradar to receive financial consideration totaling $225 million, which includes$125 million paid to Sportradar and up to $100 million in cash prepayments made by Endeavor to certain sports rightsholders [7]. Group 2: Financial Impact - The acquisition is expected to be immediately accretive to Sportradar's adjusted EBITDA margins and will accelerate revenue, adjusted EBITDA, and free cash flow growth [1][7]. - The unique structure of the transaction will strengthen Sportradar's balance sheet and enhance its liquidity position, allowing for continued strategic investments and shareholder returns [4][5]. Group 3: Strategic Importance - The addition of these betting rights will significantly increase Sportradar's content distribution capabilities and fuel product development [2]. - Basketball, soccer, and tennis account for approximately 70% of the rights in the new portfolio, which are the top three most bet on global sports, complementing Sportradar's existing offerings [7].