Sportradar affiliates plan secondary share offering

ST. GALLEN, Switzerland - Sportradar Group AG (NASDAQ:SRAD), a global sports technology company currently valued at $6.9 billion, has announced a secondary public offering of 23 million Class A ordinary shares. The shares are being offered by affiliates of the Canada Pension Plan Investment Board, Technology Crossover Ventures, and Sportradar’s CEO Carsten Koerl. The underwriters will also have an option to purchase up to an additional 3.45 million shares from these selling shareholders. According to InvestingPro data, the company maintains strong financial health with more cash than debt on its balance sheet and has delivered an impressive 137% return over the past year.

The company itself is not selling any shares and will not receive any proceeds from this secondary offering. Concurrently, Sportradar has authorized the repurchase of 3 million Class A ordinary shares, at a price equal to the secondary offering’s per-share price, with a maximum expenditure of $75 million. This buyback is part of Sportradar’s existing $200 million share repurchase program and will be funded with cash on hand. InvestingPro analysis shows the company’s strong liquidity position, with a current ratio of 1.53 and liquid assets exceeding short-term obligations.

Goldman Sachs & Co. LLC and J.P. Morgan are serving as the joint book-running managers for this secondary offering. The offering is being made through a shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC), which became effective upon filing. A preliminary prospectus supplement has also been filed with the SEC.

Investors may obtain these documents for free by visiting the SEC’s EDGAR system. Alternatively, the prospectus supplement and accompanying prospectus can be requested from Goldman Sachs & Co. LLC or J.P. Morgan Securities LLC through the contact details provided in the press release.

The press release includes forward-looking statements, which are subject to risks, uncertainties, and assumptions. These statements are not guaranteed to be a reflection of future performance and actual results could differ materially. Sportradar cautions not to place undue reliance on these forward-looking statements.

Sportradar, established in 2001, operates at the intersection of sports, media, and betting industries, partnering with various sports organizations and providing solutions to help grow their businesses. The company also promotes integrity in sports through its Integrity Services division. With revenue growth of 26% in the last twelve months and projected continued growth ahead, Sportradar demonstrates strong business momentum. For deeper insights into Sportradar’s financial health and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive access to over 30 additional key metrics and expert insights.

The information in this news article is based on a press release statement from Sportradar Group AG.

In other recent news, Sportradar Group AG has been the focus of several analyst upgrades, reflecting a positive shift in investor sentiment. BofA Securities upgraded Sportradar’s stock rating to Buy, setting a new price target of $28, citing increased revenue outlook and cost management, along with benefits from the IMG Arena transaction. Benchmark analysts also raised their price target to $30, maintaining a Buy rating, and highlighted Sportradar’s robust revenue model and global demand for its products. BTIG initiated coverage with a Buy rating and a $28 price target, emphasizing the company’s potential for mid-teens top-line growth and strategic acquisition of IMG Arena. Canaccord Genuity lifted their price target to $32, following Sportradar’s investor day, which showcased growth opportunities and a positive financial outlook. Guggenheim maintained a Buy rating with a $27 price target, expressing confidence in Sportradar’s multi-year financial outlook and strategic initiatives. These developments underscore the company’s strong position in the sports data and technology market, with a focus on revenue growth and market expansion.

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