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NEW YORK, NEW YORK - MARCH 09: The New York Stock Exchange (NYSE) stands in lower Manhattan on March 09, 2021 in New York City. The Dow Jones Industrial Average rallied more than 300 points Tuesday as tech stocks surged and optimism over the recently passed Covid relief bill cheered investors. Spencer Platt/Getty Images/AFP (Photo by SPENCER PLATT / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)

Swiss gambling data company Sportradar, self-described as “the leading global provider of sports data intelligence” is on the cusp of the "big-time" with news this week confirming the rumors of a $10 million special purpose acquisition company (SPAC) deal with Horizon Acquisition Corp. II. The move paves the way for Sportradar to become the latest publicly traded sports betting company in the bustling US market.

“Sportradar and the SPAC led by Los Angeles Dodgers minority owner and former Guggenheim president Todd Boehly have a signed letter of intent in place,” said a source close to the deal.

Like most companies currently involved in the US legal sports betting gold rush, Sportradar had been searching for a way to expand its already impressive reach. Generating more funds for business expansion is one of the key steps on that path. Special purpose acquisition company Horizon Acquisition Corp. II will provide that immediate cash-infusion and allow the data provider's stocks to be traded on the New York Stock Exchange (NYSE), where the SPAC company already has a presence.

The Sportradar Angle

Sportradar is a big player already in the sports betting industry. It is just a name hiding below the surface. Boasting partnerships with over 1000 companies in more than 80 countries worldwide, including NFL, NBA, NHL, MLB, and NASCAR in North America and overseas entities such as FIFA and UEFA, Sportradar's reach, and their influence can't be discounted, especially with the value of data in the legal sports betting world at an all-time high.

Sportradar is the company that takes sports data, translates it, and allows companies to set betting odds and settle bets. It is also an integral part of protecting the integrity of the games, through its intelligence-gathering methods and its ability to analyze such data.

It has the backing of Mark Cuban of the Dallas Mavericks, Michael Jordan of the Charlotte Bobcats, and Ted Leonsis of the Washington Wizards - big players in the world of sports.

Horizon Acquisition Corp. II Angle

Horizon Acquisition Corp. II, with its current presence on the NYSE, will give Sportradar immediate access to traders hoping to get in on the legal sports betting action. Horizon Acquisition Corp. II, which includes Todd Boehly, a minority owner of the Los Angeles Dodgers and a former executive at investment firm Guggenheim Partners went public last October, raising $525 million and making its presence known among stock-traders.

Horizon Acquisition Corp. II set Sportradar's value at $10 million, four times the $2.4 billion the firm was valued at in 2018 when it last raised capital, and six times what Genius Sports was valued at prior to it going public. The SPAC has some money and clout behind it, and it obviously sees a tremendous value in Sportradar’s services.

Simply put, Horizon Acquisition was able to immediately raise Sportradar's profile and increase its value, while at the same time, giving the data provider a vehicle for which it can navigate the US scene.

Mutually Beneficial Marriage

We have already seen the benefit that SPACs can provide to companies within the legal sports betting space. Companies such as Rush Street Interactive, Genius Sports Group, Golden Nugget Online, and the biggest DFS provider in America have all benefitted from SPAC deals in their evolution of publicly traded companies.

For Horizon Acquisition Corp. II, they get a chance to gain a piece of the US legal sports betting gold rush. For Sportradar, they get a chance to raise a ton of money with an eye on expansion in the rapidly growing US market.

The Sportradar/Horizons Acquisitions partnership deal likely still has a way to go before completion. If and when it does close, it will become one of the largest SPAC evaluations ever for a sports-related company. It also avoids any potential hurdles presented by Sportradar due to the fact that they are a foreign-based business looking to be traded publicly in the US.

SPAC companies have been making their presence felt within legal sports betting circles, and the latest deal furthers their influence in the industry. With the intense race for expansion in the US legal sports betting scene, the Sportradar/Horizon Acquisitions deal likely won’t be the last. Everybody seems to want a piece of the legal sports betting pie – partnerships like this are attempting to give them that chance.