Sportradar Buying Synergy Sports, Company Backed by Rumored SPAC Suitor Boehly
Posted on: March 23, 2021, 09:12h.
Last updated on: March 23, 2021, 10:42h.
Sportradar is acquiring sports data and video analytics provider Synergy Sports for an undisclosed sum, according to the two companies.
Sports betting data provider Sportradar is using the purchase of Synergy to complement its roster of agreements with professional sports leagues. The deal will give them more exposure to college athletics.
In the US, Sportradar is the official partner of the NBA, NFL, NHL and MLB, while Synergy Sports has league-wide relationships with the NBA and MLB, as well as all of NCAA Division I women’s and men’s basketball and over 90 percent of NCAA Division I men’s baseball,” according to a statement.
The NCAA Division I men’s basketball tournament, also known as March Madness, started last week and is one of the most wagered-on sporting events in the US.
With the Synergy purchase, Sportradar also gains access to an agreement with the International Basketball Federation (FIBA). Under the terms of Synergy’s previously existing accord with the league, the company “provides basketball teams, leagues, and federations with a full end-to-end technology platform offering automated video production and graphics.”
Interesting Element to Sportradar/Synergy Transaction
On the surface, it appears that Sportradar’s acquisition of Synergy is no more than just another bolt-on transaction adding to an already brisk pace of deal-making in the gaming industry. However, there’s more to the story.
Synergy is majority-owned by Todd Boehly’s Eldridge Industries. Boehly also founded Horizon Acquisition Corp. II (NYSE: HZON). The special purpose acquisition company (SPAC) is rumored to be serving as the vehicle by which Sportradar will become a publicly traded entity.
Another Synergy backer is a group known as Elysian Park Ventures, which is comprised of Boehly and other owners of the Los Angeles Dodgers — the Major League Baseball (MLB) franchise in which Boehly holds a stake.
Citing unidentified sources familiar with the matter, Sportico reports Boehly wasn’t directly involved in Sportradar’s negotiations with Synergy, nor does he occupy a seat on the acquired company’s board.
Still Waiting on SPAC Deal to Materialize
Rumors regarding Sportradar potentially becoming a publicly traded company have been floating around for nearly a year.
Recently, the speculation intensified with reports suggesting the firm was mulling a blank-check deal or a traditional initial public offering (IPO). It appears the former transaction is more in play because that will deliver a higher valuation.
Earlier this month, chatter surfaced that Sportradar is in talks with Boehly’s Horizon Acquisition Corp. II for a merger that would value the sports betting data provider at $10 billion. Three weeks after that speculation started, there is still no confirmation of a deal. That’s prompting rumors that the SPAC may need to issue more equity or procure private investment in public equity (PIPE) financing to get the transaction to the finish line.
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