Blackstone and KKR have reportedly advanced to the second round of bidding in an auction for a minority stake in Sportradar, a Swiss company that collects and analyzes data from live sporting events, per Reuters. EQT, which has backed Sportradar since 2012 and currently owns a 37% interest, is said to be selling the stake at a possible valuation of more than €2 billion (about $2.4 billion).
That would mark a significant return for the Stockholm-based firm, which originally put €44 million into Sportradar at an enterprise value of €127.5 million. In the years since, the company has collected some other high-profile investors, including a strategic investment in 2015 from the likes of Revolution Growth, Mark Cuban and Michael Jordan.
Those names are indicative of Sportradar's close ties with the NBA: Revolution Growth was co-founded by Washington Wizards owner Ted Leonsis, while Cuban owns the Dallas Mavericks and Jordan owns the Charlotte Hornets. This season, Sportradar began a partnership with the NBA that makes it the league's official provider of real-time statistics.
That partnership—part of a reported $250 million deal that also involves Second Spectrum, another provider of real-time sports data—includes an arrangement for the NBA to use Sportradar's integrity services offering as a way to monitor gambling activity on the league. That set-up could be increasingly appealing as the potential widespread legalization of sports betting in the US looms on the horizon. The company also has official partnerships with the NFL, NHL and NASCAR, among other leagues.
Sportradar expects to post EBITDA this year of more than €150 million, per Reuters, which means the stake sale could result in a valuation multiple of more than 13x.
Related read: A look at Kevin Durant's search for slam dunks in VC