Genius Sports Limited has agreed to buy Second Spectrum, a supplier of data monitoring and visualisation solutions, for $200 million in a definitive deal. According to the company, the acquisition would result in a full end-to-end offering for the sports, betting, and media ecosystem.
Second Spectrum is a fully integrated sports AI provider that offers monitoring, analytics, and data visualisation services. It was established in 2013. Clients can index activity on the court, pitch, or field in seconds thanks to its technology.
Teams, leagues, media, and data partners can obtain real-time insights using advanced player tracking technology, allowing them to make better decisions and increase interaction.
The total purchase price of $200 million will be paid in cash and shares of Genius Sports common stock at closing, subject to customary changes. The deal is scheduled to be completed in the second quarter of 2021, subject to customary closing conditions. Post-integration, the company is projected to be EBITDA positive, and Genius Sports’ upcoming Q1 earnings call will include more insights and quantification on synergies.
The combined product, according to Genius Sports, would generate “richer, more valuable official sports data and drive fan engagement with a compelling experience that combines real-time data, analytics, innovative augmented video streaming, and personalised content.”
Complementary client base
Second Spectrum will add a complementary client base to Genius Sports, which already has official data agreements with over 400 sports organisations, including the NFL, MLB, EPL, and NCAA.
The company is the official tracking provider for the EPL, NBA, and MLS, and it captures accurate ball and player location-based data using advanced AI and computer vision technology. In addition to these relationships, it has virtual reality collaborations with ESPN, BT Sport, and Bally Sports for select soccer and basketball games.
In order to deliver new content and revolutionise the fan viewing experience, the company has established relationships with leading sports franchises, including The Los Angeles Clippers.
CEO Mark Locke said: “Genius is committed to capturing and distributing the fastest, most accurate and secure official sports data. This acquisition supports our long-term strategic vision of utilising AI tracking, enhanced data insights and transformative technology to revolutionize the sports data landscape for the fans, our customers and sports and media partners.
“Adding additional fan engagement technology to our already diverse and cutting-edge portfolio of products and services will create compelling, unique content, that will transform user experiences and create additional revenue streams for our customers. We are delighted to welcome Rajiv and his team to the Genius Sports family.”
Rajiv Maheswaran, CEO of Spectrum, said: “We are thrilled to join the Genius Sports family. Mark and his incredible team have built the fastest growing sports data platform on the planet by better serving sports leagues, fans and their partners by leveraging technology in novel and compelling ways.
“Second Spectrum’s mission to be at the forefront of innovation in the sports ecosystem in combination with the scale and drive of Genius Sports will rapidly accelerate how content is created and experienced and bring significant value for our partners and clients.“