Herb Simon sells 15% stake in the Pacers to billionaire Steven Rales

Herb Simon has sold a 15% stake in the Indiana Pacers to a DePauw University graduate, according to a report in Sportico.

Steven Rales, a 72-year-old 1973 DePauw grad who founded the Danaher Corp., a life sciences company, in 1984, and has become a movie producer, already owned a 5% stake in the team, according to the report.

Simon confirmed the sale in a statement Thursday evening.

"My good friend, Steven Rales, who has strong Hoosier ties and is a graduate of DePauw University and co-founder of Danaher Corporation, which is the owner of Indiana-based life sciences company Beckman Coulter, expressed an interest in acquiring a minority investment in the franchise," Simon said in the statement. "After considerable discussion, Steven is going to become a minority owner of 20% of the franchise pending league approval. Management of the franchise remains under Simon family control. The Simon family is as committed to Indiana today as we have been since we moved here from New York in the 1960's."

Through Danny Lopez, the franchise's corporate spokesman, the Pacers declined further comment and declined to make Simon or Rales available for further comment individually.

Based on a $3.47 billion valuation, Rales is spending more than $510 million to increase his stake in the team to 20%. The figure is in line with recent sales of portions of the Mavericks ($3.5 billion) and Suns ($4 billion). Forbes valued the Pacers at $2.9 million in October.

Forbes estimates his worth at $7.5 billion. Rales serves as chairman of the board at Danaher, which has become involved in several industries and had around $31.5 billion in sales in 2022. Danaher focuses on tax avoidance and cash flow, according to Forbes.

Rales founded the Indian Paintbrush movie production company in 2006, and it has worked frequently with director Wes Anderson, including on this year's "Asteroid City."

This article originally appeared on Indianapolis Star: Indiana Pacers sell 15% stake in team at $3.47 billion valuation