Sportradar (NASDAQ: SRAD) has finalized its acquisition of IMG ARENA, a move that significantly strengthens its global sports betting rights portfolio. The deal, which includes strategic relationships with more than 70 rightsholders, adds approximately 38,000 official data events and 29,000 streaming events across 14 sports on six continents. This expansion brings Sportradar's total annual matches to over 1 million, solidifying its position as a leader in data-driven sports entertainment.
The acquisition enhances Sportradar's content offerings in key betting areas such as tennis, soccer, and basketball. Prominent properties now under its umbrella include Wimbledon, the U.S. Open, Roland-Garros, Major League Soccer, EuroLeague basketball, and the PGA Tour. Sportradar is already a trusted partner of organizations like the ATP, NBA, WNBA, NHL, MLB, UEFA, FIFA, and others. CEO Carsten Koerl stated, "This marks a significant milestone for Sportradar expanding our access to premium sports content that strengthens and complements our already robust global portfolio and capabilities."
Uniquely, the deal structure involves no financial consideration from Sportradar. Instead, it includes approximately $122 million in cash prepayments by the seller to sports rights holders and about $103 million to Sportradar. The company expects the acquisition to be accretive to adjusted EBITDA margins and free cash flow conversion, accelerating revenue, adjusted EBITDA, and free cash flow growth.
Sportradar is targeting double-digit revenue growth over the next three years, aiming for at least €1.7 billion (roughly $2 billion) by 2027, representing a 15% CAGR. With the addition of IMG ARENA, the company plans to outpace the global sports betting market, which is forecast to reach $182.12 billion by 2030. Margin expansion to 27% by 2027, a 700 basis point improvement, is also expected.
Beyond the acquisition, Sportradar continues to seek growth opportunities in adjacent areas, including leveraging its 360-degree marketing services in the online casino market, which it estimates as a $2 billion serviceable addressable market. The company believes its "industry-leading scale, unmatched competitive advantages and major sports rights secured for the long term" will drive future growth.
With this acquisition complete, Sportradar is well-positioned to transform fan engagement, interaction, and betting experiences. The company's enhanced portfolio and technology platform are expected to deliver even more immersive, data-rich experiences to clients, partners, and fans worldwide.
