Apax Partners, an independent global partnership, solely focuses on long-term investment in growth companies and is looking to “provide significant capital to pursue its international expansion."
According to the group’s website, “funds advised by Apax Partners typically invest in large companies with an enterprise value between €1bn ($1.17bn) and €5bn.”
The stake in Genius Sports is acquired from founders, management, funds advised by Three Hills Capital Partners and other minority shareholders. The deal is expected to close in Q3 2018.
Gabriele Cipparrone, Partner at Apax Partners, said: “We have been attracted to the sports data market for some time, having seen live data and technology as key drivers of growth. Within this sector, Genius Sports Group stood out due to the breadth of its offering, its industry-leading technology, and its excellent reputation as a ‘high integrity’ data provider.
“The company has grown strongly in recent years and we look forward to working with Mark (Locke, Genius Sports CEO) and his team to continue this growth as the company leverages new technologies to enhance its services.”
The “definitive agreement” to acquire Genius Sports could prove highly beneficial for Genius Sports, as new markets are opening up in the US since the Supreme Court’s decision to repeal the 1992 Professional and Amateur Sports Protection Act.
London-based Genius Sports’ software is currently utilised by over 300 sporting bodies around the world, where it is responsible for collecting, distributing and analysing sports data. Betgenius, the group’s sports betting division, technology is used on over 150 sportsbook operators.
Mark Locke, CEO of Genius Sports , added: “We are excited to have Apax on board as we look to capitalise on the significant expected growth in the sports data and regulated betting markets, including substantial opportunities in North America.
“As we enter the next phase of dynamic growth, Apax is one of the few partners with the expertise, global presence and access to capital to enable us to achieve our goal of becoming the most trusted and most respected sports data technology company in the world.”
Sportradar, Genius Sports’ competitor, was recently valued at $2.4bn after investment firm EQT sold a minority stake to the Canada Pension Plan Investment Board and Menlo Park.
