Sports tech firm Sportradar renews deal with FanDuel after announcing $100 million IPO

Key Points
  • Sportradar, a Switzerland-based company, has extended its deal to supply FanDuel with official data from pro leagues, including the NBA, MLB and NHL.
  • The agreement is worth between $150 million and $200 million, according to people familiar with the deal.
FanDuel app
Andrew Harrer | Bloomberg | Getty Images

First came the IPO. Now, data supplier Sportradar has extended a critical partnership to keep pace in the sports betting world.

Sportradar and betting company FanDuel agreed to new terms that extend their pact to 2028, the parties told CNBC. The Switzerland-based company will continue to supply FanDuel with its official data from top pro leagues, including the National Basketball Association, Major League Baseball, the National Hockey League and international soccer.

Financial terms were not made public, but the agreement is valued at $150 million to $200 million, according to people familiar with the deal.

Sportradar said it will play a "critical role in aiding FanDuel's growth within a U.S. sports betting landscape." Flutter Entertainment, a U.K.-based mobile gaming company, owns 95% of FanDuel. Flutter trades on the London Stock Exchange and has a market capitalization of $34 billion. FanDuel first partnered with Sportradar in 2018.

"Both Sportradar and FanDuel have established market-leading positions through investment in innovation and cutting-edge products and services, and this expanded agreement enables us to work together to further evolve FanDuel's offering, particularly in areas like in-play betting," Sportradar CEO Carsten Koerl said in a statement. "We're looking forward to deeper integration with the FanDuel team to continue building on the success we've had together thus far."

Sportradar wants to empower its position within the sports betting supplier front, and is ending the summer on an aggressive note.

On Tuesday, the company announced its IPO with a listing size of $100 million, according to its SEC filing. Sportradar will list on the Nasdaq Global Select Market under the ticker symbol SRAD. The public listing comes after a botched SPAC attempt that included Horizon Acquisition Corp. II, a company led by Los Angeles Dodgers minority owner Todd Boehly.

Although losing out on National Football League data rights was a setback, Sportradar strengthened its tech offerings by acquiring Synergy Sports last March. It also partnered with Bally's in July. Bally's has a sponsorship deal with broadcast company Sinclair that enables Sportradar's sports data to be used by Sinclair's multiple media platforms. 

In the extension with FanDuel, Sportradar said it plans to upgrade the company's in-play bet offerings, which it says represents nearly 50% FanDuel's betting handle. FanDuel is well positioned for leveraging micro-bets, as it's aligned with tech firm Simplebet. This company offers data around football that help gaming companies offer quick odds on bets like which player will make the next catch or whether the next play will be a pass or a run.

Simplebet raised $15 million in March in a financing round as the software company wants to enhance its sports betting products.

 Disclosure: CNBC parent Comcast and NBC Sports are investors in FanDuel.

Correction: This story has been updated with the correct sports leagues Sportsradar will provide data for.

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