Sportradar, a leading sports data and technology provider, has made a significant move in the sports betting industry by entering into a deal to acquire IMG Arena, a division of Endeavor Group. The $125 million acquisition, which is expected to close by the end of 2025, will expand Sportradar’s portfolio with high-demand sports betting rights and content. This deal positions Sportradar to tap into major global sports like tennis, soccer, and basketball, amplifying its reach in some of the world’s most bet-upon events.

The acquisition will enhance Sportradar’s product offerings by adding assets such as rights to major sports events, including Wimbledon, the US Open, Roland-Garros, Major League Soccer, EuroLeague basketball, and the PGA Tour. The strategic value of these sports rights has already been recognized by Sportradar’s CEO, Carsten Koerl, who highlighted the company’s successful track record in maximizing revenue through its global betting rights deals. With this acquisition, Sportradar will further its goal of offering unparalleled sports coverage and technological solutions to its clients.

A Strong Foundation for Future Growth

Sportradar has experienced a remarkable year in 2024, with revenue hitting €1.1 billion—an impressive 26% increase from 2023. The company has successfully capitalized on the rapid growth of the U.S. market, where demand for its innovative products has surged. The acquisition of IMG Arena is seen as a natural extension of Sportradar’s momentum, reinforcing its competitive position in the industry.

Sportradar’s growth has been driven by its diverse portfolio of products, which includes betting and gaming content, managed trading services, and its ad:s business. These areas have seen strong performance in the past year, underscoring the company’s ability to thrive in a rapidly expanding market. Notably, the deal with IMG Arena will not only boost Sportradar’s content offerings but also accelerate its financial performance. The company anticipates that the integration of IMG Arena will drive significant growth in revenue, adjusted EBITDA, and free cash flow, while also contributing positively to adjusted EBITDA margins.

A Unique Deal Structure to Accelerate Growth

The acquisition comes with a unique deal structure that includes $125 million in cash and $100 million in prepayments to certain sports rights holders. This structure ensures that Sportradar will benefit from immediate cash flow and margin expansion, positioning the company for further success in the years ahead. Carsten Koerl emphasized the significance of the deal’s structure, noting that it accelerates Sportradar’s revenue and cash flow profile while opening up new growth opportunities for the company.

With the addition of IMG Arena’s global portfolio, Sportradar now holds betting rights to three of the four major tennis Grand Slam events. This acquisition further strengthens Sportradar’s global distribution network and enhances its ability to provide clients with comprehensive and high-quality content from some of the most popular sports leagues and tournaments worldwide.

Sportradar is confident that the IMG Arena acquisition will help the company maintain its trajectory of growth in 2025 and beyond. In addition to enhancing its existing offerings, the company is focusing on expanding margins and increasing free cash flow generation. For 2025, Sportradar forecasts a 15% growth in total revenue, with at least 200 basis points of adjusted EBITDA margin expansion.