Sports data firm Genius Sports Limited has entered into a definitive agreement to acquire Second Spectrum, a provider of data tracking and visualization solutions, for $200m. The acquisition, it stated, will create a complete end-to-end offering for the sports, betting and media ecosystem.
Second Spectrum, founded in 2013, is a fully integrated sports AI provider, offering tracking, analytics and data visualization services. Its technology allows clients to automatically index action on the court, pitch or field within seconds.
Using advanced player tracking technology, teams, leagues, media and data partners are able to gain real-time insights; driving decision making and greater levels of engagement.
The aggregate $200m purchase price, subject to customary adjustments, will be paid at closing in cash and shares of Genius Sports common stock. Consummation of the transaction is subject to customary closing conditions and expected to take place in the second quarter of 2021. The business is expected to be EBITDA positive post-integration and additional details and quantification on synergies will be provided in Genius Sports’ upcoming Q1 earnings call.
In a statement, Genius Sports noted that the combined offering will create “richer, more valuable official sports data and drive fan engagement with a compelling experience that combines real-time data, and analytics with innovative augmented video streaming and personalized content”.
Second Spectrum will also bring a highly complementary client base, building on Genius Sports’ official data partnerships with over 400 sports organizations, including the NFL, MLB, EPL and NCAA.
The firm is the official tracking provider of the EPL, NBA, and MLS, using advanced AI capabilities and computer vision technology to capture precise ball and player location-based data. In addition to these relationships, it has partnerships with ESPN, BT Sport, and Bally Sports to offer augmented reality features for select soccer and basketball games.
The business has also formed partnerships with leading sports franchises, including The Los Angeles Clippers, to provide new content and revolutionize the fan viewing experience.
“Genius is committed to capturing and distributing the fastest, most accurate and secure official sports data,” said the firm’s CEO Mark Locke. “This acquisition supports our long-term strategic vision of utilizing 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.”
Spectrum CEO Rajiv Maheswaran stated: “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.“