Second Spectrum was founded in 2013. It is an AI provider, offering tracking, analytics, and data visualization services. Second Spectrum’s technology allows clients to automatically index action on the court, pitch, or field within seconds. Teams, leagues, media, and data partners are able to gain real-time insights; driving decision-making and greater levels of engagement.
The aggregate purchase price for the acquisition is $200 million, subject to customary adjustments. The purchase price 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.
The acquisition is expected to accelerate Genius Sports’ convergence of sports, betting, and media to power the fan experience, combining Genius Sports’ streaming capabilities with Second Spectrum’s interactive broadcast solutions which integrate advanced data with augmented video content.
Second Spectrum will also bring a complementary client base, building on Genius Sports’ official data partnerships with over 400 sports organizations, including the NFL, MLB, EPL, and NCAA. Second Spectrum 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, Second Spectrum 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 enhance the fan viewing experience.
The CEO of Genius Sports Mark Locke, said: “Genius is committed to capturing and distributing the fastest, most accurate and secure official sports data. 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.”
The CEO of Second Spectrum Rajiv Maheswaran, commented: “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.“
On April 20, 2021, Genius Sports completed its previously announced business combination with dMY Technology Group, Inc. II as reported by Yogonet last month.