Genius Sports Closes Second Spectrum Buy For $200 Million Cash, Shares
Sports data and analytics company Genius Sports has closed on its acquisition of video analytics and data firm Second Spectrum. Second Spectrum works with leagues including the NBA, Premier League and Major League Soccer.
The deal was completed Tuesday evening for $200 million, with Second Spectrum shareholders being paid half their holdings in cash and the other half in Genius Sports stock, according to a filing with the Securities & Exchange Commission.
Second Spectrum was founded in 2013 by its CEO Rajiv Maheswaran, COO Yu-Han Chang and CTO Jeff Su. The business uses cameras installed in arenas to track the movement of the ball and players. That video is then converted into real-time data for use in coaching, scouting, fan engagement and augmented reality. Investors in the business include Steve Ballmer, the owner of the L.A. Clippers and Microsoft billionaire, the Chernin Group, CAA Ventures and Elysian Park Ventures, a private investment firm created by L.A. Dodgers owners including Todd Boehly, Mark Walter, Magic Johnson and Peter Guber. Second Spectrum sold about $25 million in equity in a private round in 2018, according to a filing with the SEC.
Genius Sports likely will use Second Spectrum’s data gathering abilities to craft the betting feeds it provides to its sportsbook clientele. Unique sports betting options would allow Genius, which went public by SPAC in April, to charge a premium for its services.
Genius shares closed at $17.74 Tuesday in trading on the New York Stock Exchange.
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