Genius Sports eyes US expansion after private equity takeover
Betgenius parent company to focus on the Americas after being acquired by Apax Partners
Genius Sports has been acquired for an undisclosed sum by funds managed by private equity firm Apax Partners, the sports betting provider announced this morning.
The ownership stake was acquired from Betgenius’ founders, management, funds advised by Three Hills Capital Partners and other minority shareholders.
The transaction is expected to close in Q3 2018.
“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,” said Genius Sports CEO Mark Locke.
“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.”
Genius Sports has data deals in place with Major League Baseball, the NCAA, the PGA Tour and the Premier League.
A takeover of the firm has been rumored for several months, with other major providers including Playtech thought to be in the running.
However the private equity deal avoids the need for any major technology migrations and will see day-to-day operation largely continue as before.
The main benefit will be a significantly increased war chest that will see Betgenius invest in organic growth, particularly in the Americas, and inorganic growth through M&A.
Gabriele Cipparrone, partner at Apax Partners, added: “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 and his team to continue this growth as the company leverages new technologies to enhance its services.”
Apax has raised and manged funds worth more than $50bn in its 35-year history. The firm has no existing investments in the gambling industry but has had several technology success stories, including an early-stage investment in King, the Swedish developer of Candy Crush.