CPPIB buys minority stake in sports gambling data firm Sportradar

The Canada Pension Plan Investment Board is preparing to buy a 39 per cent stake in Sportradar, a global company that distributes data from the National Hockey League and other professional sports for betting purposes.

Swiss-based company works with pro sports leagues to provide accurate data for gambling purposes

The Canada Pension Plan Investment Board is preparing to buy a 39 per cent stake in Sportradar, a global company that distributes data from the National Hockey League and other professional sports for betting purposes. Sportradar, whose CEO, Carsten Koerl, is shown above in 2009, has an estimated value of $2.4 billion US, including equity and debt owed. (Johannes Eisele/Reuters)

The Canada Pension Plan Investment Board is preparing to buy a 39 per cent stake in Sportradar, a global company that distributes data from the National Hockey League and other professional sports for betting purposes.

For this investment, Toronto-based CPPIB has teamed up with TCV of Menlo Park, Calif., but they haven't disclosed how much their Sportradar stake will cost.

However, based on Sportradar's estimated value of $2.4 billion US, including equity and debt owed, CPPIB's share of the company would be worth about $936 million. That means CPP would own about 40 per cent of the company, which claims its revenues are expanding by about 40 per cent per year at the moment.

Minority shareholders in the company include former NBA great Michael Jordan, Washington Capitals owner Ted Leonsis, and Dallas Mavericks owner Mark Cuban.

Ryan Selwood, head of direct private equity investment at CPPIB, said the sports data market is seeing strong growth driven by rising fan engagement, new markets and increased spending on digital sports content.

"Having two new investors with a strong North American footprint is ideal given our increasing focus and expanding operations in the U.S., as the sports industry evolves to meet the expectations of today's sports fans," Sportradar CEO Carsten Koerl said in a news release.

Among other things, Sportradar works with the NHL and National Basketball Association to distribute data and with Major League Baseball to distribute audio and video content to sport betting operators. The company says it tracks more than 400,000 live sporting events per year, tabulating data on behalf of 60 different leagues around the world.

It is also a partner with the National Football League and the NASCAR auto racing circuit as well as two major soccer bodies, FIFA and UEFA.

CPPIB and TCV will be acquiring their interest in Sportradar from private equity firm EQT and certain minority shareholders.

Koerl will retain his ownership share and continue to drive the company's future development and growth.

With files from CBC News

prothom-alo.com, smh.com.au, tutorialspoint.com, fandango.com, littlethings.com, almasryalyoum.com, firstpost.com, dafont.com, investopedia.com, lolwot.com,