Sportradar Reportedly Close to $10 Billion Agreement with Horizon Acquisition II

Sportradar has reportedly reached a pact with special purpose acquisition company (SPAC) Horizon Acquisition Corp. II (NYSE: HZON). That paves the way for the sports betting data provider to go public at a $10 billion valuation.

Rumors about a deal between the two parties surfaced last week, sending shares of the blank-check company founded by Todd Boehly higher by almost 11 percent. Although neither the SPAC nor Sportradar confirmed the agreement, Sportico reports an accord is in place.

The deal includes the addition of other investors as part of a private investment in public equity, or PIPE, which will be used to buy down existing Sportradar equity holders,” according to the sports business outlet.

Horizon Acquisition II went public last October, raising $525 million. Boehly is a minority owner of the Los Angeles Dodgers and a former executive at investment firm Guggenheim Partners.

Sportradar Going Public Literally Big Deal

As blank-check fever permeates the gaming industry, rumors about Sportradar going public heated up. That’s due in part to the Swiss company’s status as one of the dominant providers of data to sportsbooks and media outlets.

League clients include FIFA, Major League Baseball (MLB), NASCAR, the NFL, NBA, and NHL. Even with an extensive roster of US leagues, Sportradar currently generates just six percent of its revenue in this region. That indicates there’s plenty of room for growth in the world’s fastest-growing sports wagering market.

Last month, speculation escalated, with talk that the company was mulling a traditional initial public offering (IPO) or a merger with the SPAC at a valuation of $10 billion to $12 billion. The $10 billion the Horizon Acquisition II values the data provider at is well in excess of the $6 billion to $8 billion estimates placed on the company in a standard IPO scenario. It is also more than quadruple the $2.4 billion the firm was valued at following its last capital raise in 2018.

At $10 billion, the multiple assigned to Sportradar is more than six times that of the $1.5 billion rival Genius Sports is worth in its SPAC deal with dMY Technology Group, Inc. II (NYSE:DMYD).

Assuming Horizon II can get the deal across the finish line, Sportradar represents one the biggest blank-check deals on record and the largest to date in the sports universe, according to Sportico.

Big Names Involved

In addition to Boehly, Horizon II’s advisory team includes DraftKings CEO Jason Robbins and Cindy Holland, an 18-year veteran of Netflix.

Boehly’s first SPAC, Horizon Acquisition I (NYSE:HZAC) is still searching for a business combination.

Sportradar has its own roster of well-known supporters, including three NBA owners, Mark Cuban of the Dallas Mavericks, Michael Jordan of the Charlotte Bobcats, and Ted Leonsis of the Washington Wizards. One of the company’s largest investors is the Canada Pension Plan Investment Board (CPPIB).