Genius Sports announced last Tuesday it will be offering 20 million ordinary shares, including 12 million shares being offered by the company. The additional eight million shares will be offered by certain of its shareholders, according to a news release.
The UK-based sports data and technology company will also grant the underwriters a 30-day option to purchase an additional three million shares. Genius Sports will not receive any proceeds from the eight million shares offered by its shareholders.
The development comes less than a month after Genius Sports announced a business combination with dMY Technology Group – the Las Vegas-based special purpose acquisition company. The $1.5 billion SPAC deal allowed the London-based company to trade on the NYSE.
Overall, Genius Sports will sell as many as 23 million shares in a secondary stock offering led by Goldman Sachs – an American multinational investment bank and financial services company.
Goldman Sachs will be allowed to purchase additional three million shares for itself. As of Monday, those shares are worth $ 456 million.
Though Genius Sports will not get any proceeds from the sale of the shareholders’ eight million, it would receive capital from the rest, as much as $300 million. Sports data and analytics firm will use the net proceeds for general corporate purposes.
Genius Sports Appearing on the US Sports Betting Horizon
Genius Sports is a global leader in online sports content, whose technology spans 15 countries. The company has struck partnerships with more than 400 sports organizations globally, including wide-ranging associations and a key role in the flourishing US online sports betting industry.
According to the company, its partners include the world’s leading sportsbooks including FanDuel, BetMGM, Betfair, PaddyPower, Kambi, and SBTech. Genius Sports is also a proud partner of sports leagues such as NFL, NBA, PGA, EPL, and NCAA. The sports data company has over 100 media and advertising customers.
The UK-based company covers as many as 240,000 sporting events annually. In its quarter as a public company ending in March, Genius reported $54 million in sales, exceeding the expectations.
Genius-NFL Data Rights Deal
Among the most significant deals Genius Sports has struck was announced April 1, when it became the exclusive data rights partner of the National Football League (NFL). The multi-year partnership of a reported $1 billion will allow the league to own nearly 5.9% of the company.
Previously, Sportradar – a Switzerland-based company – had been the NFL’s exclusive data provider.
Genius Sports raised its FY2021 group revenue guidance from $190 to $260 million.