Switzerland’s Sportradar Group is moving ahead with its IPO plans. The company has filed F-1 paperwork with the SEC to go public. What's the IPO date and price?
Founded in 2001 and led by CEO Carsten Koerl, Sportradar offers products and services to the sports betting market. The IPO comes after the company's plan to go public through blank check company Horizon Acquisition II (HZON) appears to have failed.
Sportradar’s IPO date
In the IPO, Sportradar plans to raise $100 million, a placeholder that will likely change. The IPO date hasn't been disclosed but it could happen in the coming months. The company filed confidentially for an IPO in Feb. 2021.
JPMorgan Chase, Morgan Stanley, Citigroup, and UBS Investment Bank are the joint book-runners for the IPO. The net proceeds from the IPO will be used for working capital and general corporate purposes.
Sportradar’s IPO price
Sportradar stock will trade under the ticker symbol “SRAD” on the Nasdaq. The price range for its IPO isn’t known yet.
What happened to Sportradar’s SPAC merger?
In Jun. 2021, the HZON SPAC called off its plan to take Sportradar public, according to Sportico. This was mainly because of the SPAC market slowing, regulations tightening, and there being less access to private investment capital (PIPE). Both companies had signed a letter of intent to merge in Mar. 2021. The SPAC was started by Eldridge Industries co-founder Todd Boehly.
Sportradar's IPO rumors began to circulate around a year ago, with initial speculation that Sportradar's projected valuation was between $10 billion and $12 billion. Reportedly, the HZON SPAC and Sportradar almost agreed on a merger worth $10 billion. In 2018, the company was valued in private markets at $2.4 billion.
Sportradar's valuation in its IPO isn't yet known. However, it's worth noting that competitor Genius Sports has a market capitalization of $3.3 billion. Genius has struck a new supply deal with DraftKings, one of the leading sportsbooks in the U.S.
Should you buy Sportradar IPO?
Forecasting Sportradar's prospects is difficult because its IPO pricing and valuation aren't known yet. The company has more than 150 sports league partners and supplies data to over 900 sports betting operators, including DraftKings. Sportradar has relationships with the National Basketball League, the National Football League, and NASCAR.
Sportradar’s revenue rose 6.4 percent YoY (year-over-year) to $479.8 million (404.9 million euros) in 2020 and 42 percent YoY to $322.4 million (272.1 million euros) in the first six months of 2021. Its net income decreased YoY to 17.7 million euros in the first six months of 2021 from 20.2 million euros. As of Jun. 30, 2021, the company had 799.6 million euros in total liabilities and 190.7 million euros in cash.
Sportradar's largest investor is the Canada Pension Plan Investment Board. The company’s other backers include billionaire Mark Cuban and basketball legend Michael Jordan. In 2021, the global sports media and events market is expected to be worth $176 billion, with sports rights and gate revenue comprising $102 billion of that amount.