Sport data provider Sportradar is reportedly to go public in talks. The business has formed several main alliances with all four major professional sports leagues including the NFL and includes the likes of Mark Cuban, Michael Jordan and Washington Wizards and Capitals owner Ted Leonsis in its A-list investor roster.
Sportico reports that Sportradar is most likely to forgo a traditional IPO and start a special purpose acquisition firm. Also known as a blank-check company, a SPAC will launch an IPO to acquire a rapidly growing business. This significantly accelerates the process for companies like Sportradar who are trying to go faster to the public than the IPO process will allow.
DraftKings followed the direction in 2019 when it went public with Diamond Eagle Acquisition Corp. in a $3.3 billion transaction. Diamond Eagle is a SPAC and presumably Sportradar is looking for a similar company to start via reverse merger.
A host of betting companies such as FanDuel and Penn National Gaming have collaborated with the Swiss sports betting data provider. Sportradar agreements provide important access for these operators to official data from the major sports leagues, including the NFL.
NASCAR has also relied heavily on its relationship with Sportradar to broaden the betting reach and feature of the sport, through the dissemination of live racing data through Sportradar.
Sportradar could partner with an investment group headed by Harry Sloan and Jeff Sagansky, who oversaw the Diamond Eagle Acquisition Corp IPO. According to rumours, the pair also launched a $600 million IPO earlier this year with Flying Eagle Acquisition Corp, another blank check business that could potentially be partnering with Sportradar in a reverse merger.