Private equity firm EQT has sold a minority share of sports data and integrity company Sportradar to Canada Pension Investment Board (CPPIB) and Silicon Valley-based growth equity firm TCV.
The investment sees CPPIB and TCV become strategic partners of Sportradar in a deal which values the company at €2.1 billion (US$2.4 billion).
Under the terms of the deal, Sportradar founder and chief executive Carsten Koerl will retain his entire ownership position and continue to drive its future development and growth. EQT will also reinvest a portion of its sale proceeds into Sportradar.
“CPPIB and TCV are both known for extensive global tech experience and a track record for working alongside innovative management teams to help achieve their long-term vision,” said Koerl. “Having two new investors with a strong North American footprint is ideal given our increasing focus and expanding operations in the US, as the sports industry evolves to meet the expectations of today’s sports fans.”
Sportradar has a number of high-profile partnerships within sport, including agreements with the National Basketball Association (NBA), National Football League (NFL) and Fifa.
“The sports data market, particularly real-time data, is a compelling long-term investment opportunity, with strong growth driven by rising fan engagement, opening of new markets and increasing spend on digital sports content globally,” said Ryan Selwood, managing director, head of direct private equity, CPPIB. “We are excited to partner with Carsten and look forward to supporting his innovative vision for Sportradar by further investing into artificial intelligence and global expansion.”
“Sportradar is a world-class sports data business that has maintained an impressive track record of delivering best-in-class technology solutions with a customer-centric approach,” added John Doran, general partner at TCV. “We look forward to working with Carsten and the team to take advantage of the developing US market and drive the evolution of how sports content will be consumed in the future.”
The transaction is expected to be closed later this year once all necessary regulatory approvals and consents have been received.