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ST. GALLEN, Switzerland - Sportradar Group AG (NASDAQ: SRAD), a global sports technology company, announced its definitive agreement to acquire IMG ARENA from Endeavor Group Holdings, Inc. (NYSE: EDR), a $13.55 billion market cap entertainment and sports company. According to InvestingPro data, Endeavor has demonstrated strong growth with revenue reaching $7.11 billion and impressive year-over-year growth of 29.5%. The acquisition, expected to close in the fourth quarter of 2025, will enhance Sportradar’s product offering and strengthen its position as a leading content provider for major sports betting, including tennis, soccer, and basketball.
IMG ARENA’s portfolio includes rights to approximately 39,000 official data events and 30,000 streaming events across 14 sports on six continents. Notable properties include three of the four Grand Slam tennis tournaments, Major League Soccer, EuroLeague basketball, and the PGA Tour. This acquisition is set to bolster Sportradar’s strategic global sports coverage and is anticipated to accelerate the company’s revenue, adjusted EBITDA, and free cash flow growth. InvestingPro analysis shows Endeavor currently generates $522.8 million in EBITDA, with analysts predicting improved profitability this year. Get access to 6 more exclusive ProTips and comprehensive financial analysis with an InvestingPro subscription.
The transaction is uniquely structured, with Sportradar not required to pay any financial consideration. Instead, Endeavor will provide financial consideration totaling $225 million, consisting of $125 million paid to Sportradar and up to $100 million in cash prepayments made to certain sports rightsholders. While Endeavor operates with a moderate level of debt (Debt/Equity ratio of 1.58) and faces some liquidity challenges with a current ratio of 0.81, InvestingPro’s analysis indicates the company maintains adequate financial flexibility for this strategic move.
Sportradar’s CEO, Carsten Koerl, expressed confidence in the company’s ability to maximize the return on investment from the global betting rights deals and the acquisition’s potential to enhance margins and accelerate revenue and cash flow profiles.
The acquisition is subject to regulatory approvals and customary closing conditions. UBS Swiss Financial Advisors acted as the exclusive financial advisor, with Brandl Talos serving as transaction counsel to Sportradar.
Further details on the deal will be shared during Sportradar’s earnings call today at 8:30am EST and at its Investor Day on April 1. This strategic move aims to deliver exceptional value to Sportradar’s partners, clients, and shareholders, and is based on a press release statement from the company.
In other recent news, Endeavor Group Holdings has reported a substantial increase in its financial performance for the fourth quarter of 2024, driven by the growth of its Prime subscription model. The company saw a 40% year-over-year increase in cash EBITDA, reaching $124 million, and a 91% rise in free cash flow to $69 million. Endeavor’s strategic focus on expanding its Prime membership base has significantly contributed to these financial improvements. Additionally, the company repurchased €40.1 million of treasury shares, further enhancing shareholder value.
In a separate development, Endeavor Group expanded its credit facility to $3 billion through an amendment to its Margin Loan Agreement. This financial move, disclosed in a recent SEC filing, provides the company with increased financial flexibility. Meanwhile, Silver Lake has confirmed its acquisition of Endeavor at $27.50 per share, a decision that has led to some investor uncertainty due to the terms of the deal.
Endeavor’s strategic maneuvers and financial results reflect its ongoing transformation and focus on growth opportunities. The company continues to emphasize its Prime model, aiming to add over 1 million new members by FY 2026, as noted by financial executives during the earnings call. These recent developments highlight Endeavor’s commitment to enhancing its financial position and pursuing strategic growth initiatives.
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