Sportradar Nearing Deal with Horizon Acquisition II, SPAC Advised by DraftKings CEO Robbins

By | March 3, 2021

Sports betting data provider Sportradar is reportedly in discussions to go public through a transaction with special purpose acquisition company (SPAC) Horizon Acquisition Corp. II (NYSE: HZON).

Sportradar SPAC
Horizon Acquisition founder Todd Boehly. His SPAC could take Sportradar public. (Image: The Sun)

Bloomberg initially reported the news earlier this evening, citing unidentified sources familiar with the matter. A valuation for the Swiss company wasn’t mentioned in that article, but prior speculation indicates the data firm could be valued at $10 billion to $12 billion in a blank-check deal.

The company was last valued at $2.4 billion in 2018. Last year, speculation swirled it was mulling a deal with an unidentified blank-check company to go public, but those rumors died down only to be resuscitated last month.

Horizon is the second SPAC founded by Todd Boehly, a former Guggenheim Partners executive. The first version of Horizon Acquisition, which trades under the ticker “HZAC,” has yet to find a deal, according to SPAC Track.

The sequel went public last October, raising $525 million while declaring an intent to focus on media and entertainment assets.

Sportradar Could Be Jewel Among Gaming SPAC Deals

If the data provider is valued at $10 billion to $12 billion, it would easily be one of the largest of the recent SPAC transactions, gaming or otherwise.

There’s also been chatter that Sportradar’s ultimate valuation could affect rival Genius Sports, which is being valued at $1.5 billion in blank-check deal with dMY Technology Group, Inc. II (NYSE:DMYD). Genius Sports recently said it expects to report revenue of $145 million in 2020 on adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $14 million.

While the pace of blank-check deals in the gaming arena, including iGaming, land-based and social casinos and sports wagering, is brisk, Sportradar ranks as one of the plum opportunities for investors among companies in the industry that are still privately.

The company says it provides data to 1,000 companies and it has agreements with Major League Baseball (MLB), the NBA and the NHL as well as NASCAR and the PGA Tour.

Additionally, there’s significant room for growth in the US, the world’s fastest-growing sports wagering market. Sportradar, which has almost $100 million in cash on hand, generates just six percent of revenue in the US.

Impressive Sports Rosters

Between Horizon Acquisition Corp. II and Sportradar itself, the entities have deep sports ties. Boehly, the SPAC’s founder, is a co-owner of the Los Angeles Dodgers while the blank-check firm counts DraftKings CEO Jason Robbins among its advisors.

Sportradar has its own group of high profile investors, including three NBA owners — Mark Cuban of the Dallas Mavericks, Michael Jordan of the Charlotte Bobcats, and Ted Leonsis of the Washington Wizards.

The NFL, which is a Sportradar client, invested in the company in 2015 and 2019, according to Bloomberg.

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