Sportradar has significantly expanded its global sports data footprint by acquiring IMG Arena's sports betting rights portfolio from Endeavor in a uniquely structured $225 million transaction. The deal, announced on Wednesday alongside strong fourth-quarter earnings, sent Sportradar's stock surging 11.2% as investors responded positively to the strategic acquisition.
Unlike traditional acquisitions, the transaction features an innovative financial arrangement where Sportradar won't make any direct cash payments. Instead, Endeavor will pay Sportradar $125 million, with an additional $100 million allocated toward cash prepayments for various rights holders.
"Sportradar's success is driven by the breadth of its sports coverage, its broad product portfolio and leading technology, and its global distribution network," said Sportradar CEO Carsten Koerl in a statement. "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."
The acquisition brings several premium sports properties under Sportradar's control, significantly enhancing its betting data offerings in three key sports that collectively represent approximately 70% of global sports betting activity:
Tennis: Three of the four Grand Slam tournaments (Wimbledon, US Open, and Roland Garros)
Basketball: EuroLeague rights
Soccer: Major League Soccer data rights
Golf: PGA Tour data
In total, the deal includes relationships with over 70 rights holders covering approximately 39,000 official data events and 30,000 streaming events across 14 sports on six continents.
Sportradar expects the acquisition to immediately boost its adjusted EBITDA margins and accelerate revenue, profit, and free cash flow growth. The timing is opportune, as the company just reported impressive financial results:
Q4 revenue reached €307 million, up 22% year-over-year
Full-year 2024 revenue hit €1.1 billion, a 26% increase from 2023
Adjusted EBITDA for the quarter rose 53% to €61 million
The company's US business now accounts for 24% of total revenue, representing a 5 percentage point increase from the previous year.
Financial analysts reacted positively to both the acquisition and earnings report. Steven Pizzella of Morgan Stanley raised his SRAD target to $27 while maintaining a buy rating.
"Overall, we continue to believe SRAD gives investors, who are interested in gaining long-term exposure to the rapidly growing sports betting industry, a pure-play way to get leverage to the theme, through a profitable and majority subscription-based (~70% of revenue), B2B operating model," Pizzella noted.
The acquisition comes as Endeavor prepares to go private and continues divesting certain assets. Just months earlier, Endeavor sold OpenBet for approximately $450 million in a management buyout deal, signaling its shift away from sports betting technology.
For Sportradar, the transaction strengthens its position against competitors in the sports data market while enhancing its in-play and micro-betting capabilities—areas seeing rapid growth in the global sports betting industry.
The deal is expected to close in the fourth quarter of 2025, pending necessary regulatory approvals. Sportradar plans to provide additional details during its upcoming Investor Day on April 1.