Sportradar has completed its acquisition of IMG ARENA, significantly expanding its global sports betting rights portfolio and positioning the company for accelerated growth in the rapidly expanding sports entertainment market. The deal marks a major milestone for Sportradar as it strengthens its position in data-driven sports entertainment, with the combined portfolio now delivering over 1 million matches annually across more than 120 countries.
The acquisition enhances Sportradar's content and product offerings in popular betting sports including tennis, soccer, and basketball. The expanded portfolio now includes prominent properties such as Wimbledon, the U.S. Open, Roland-Garros, Major League Soccer, EuroLeague basketball, and the PGA Tour. Sportradar serves as the trusted partner of major sports organizations including the ATP, NBA, WNBA, NHL, MLB, UEFA, FIFA, CONMEBOL, AFC, and the Bundesliga.
Carsten Koerl, Sportradar CEO, stated that this acquisition represents a significant milestone for the company, expanding access to premium sports content that complements their existing global portfolio. The company is now uniquely positioned to deliver more immersive, data-rich experiences to clients, partners, and fans worldwide while accelerating innovation across the global sports ecosystem.
The financial structure of the deal is particularly advantageous for Sportradar. The company received approximately $103 million as part of the transaction, while the seller made about $122 million in cash prepayments to certain sports rights holders. This unique arrangement means Sportradar didn't have to provide any financial consideration, making the acquisition immediately accretive to adjusted EBITDA margins and free cash flow conversion.
Sportradar expects the IMG ARENA acquisition to significantly contribute to its goal of achieving double-digit revenue growth over the next three years. Prior to this acquisition, the company was targeting revenue of at least €1.7 billion by 2027, representing a 15% compound annual growth rate. With the addition of IMG ARENA's portfolio encompassing strategic relationships with more than 70 rightsholders, delivering approximately 38,000 official data events and 29,000 streaming events across 14 global sports on six continents, Sportradar anticipates outpacing the global sports betting market.
The global sports betting market is forecast to reach $182.12 billion by 2030, growing at a CAGR of 10.3% from now until then. Sportradar's expansion comes at a time when leagues, sports books, and technology companies increasingly rely on real-time data and insights to enhance engagement and unlock new revenue opportunities. The company leverages proprietary AI and next-generation technology to deliver these services at unprecedented levels.
Beyond top-line growth, Sportradar is targeting margin expansion to 27% by 2027, representing a 700 basis point improvement. The company attributes its growth expectations to industry-leading scale, unmatched competitive advantages, and major sports rights secured for the long term. During a recent investor day, the company indicated plans to continue seeking opportunities in adjacent areas, including leveraging its marketing services capabilities in the online casino market, which represents a potentially $2 billion serviceable addressable market.
Sportradar expects to seamlessly integrate and monetize the newly acquired rights across its highly scalable technology platform and client network. The company's proven ability to cross-sell and up-sell its diverse portfolio positions it well to capitalize on the growing global demand for sports betting and data-driven entertainment experiences.
