Sportradar (SRAD) - Get SPORTRADAR GROUP Report on Wednesday unveiled an agreement with the National Basketball Association, granting the Swiss betting data firm exclusive rights to distribute NBA data to sportsbooks.
The eight-year deal, which starts in 2023, cost Switzerland-based Sportradar more than $1 billion in cash and stock, a knowledgeable source told the sports business publication Sportico.
The NBA will gain a 3% equity stake in the company, according to a regulatory filing. Sportradar has a market cap of $6.3 billion.
The agreement includes the Women’s National Basketball Association as well.
Sportradar’s stock recently traded at $21.45, down 0.9%. It has fallen 14% since its Sept. 14 initial public offering
Sportradar, backed by the basketball legend Michael Jordan and Dallas Mavericks owner Mark Cuban, counts DraftKings (DKNG) - Get DraftKings Inc. (DKNG) Report, Twitter (TWTR) - Get Twitter, Inc. Report and Disney’s (DIS) - Get Walt Disney Company Report ESPN among its customers.
The deal extends a relationship that began in 2016, when the NBA made Sportradar an official provider of real-time NBA statistics.
Earlier this year, Sportradar signed data rights deals with the Union of European Football Associations, the International Tennis Federation, the International Cricket Council and the National Hockey League.
Also on Wednesday, Sportradar reported third-quarter revenue of 136.8 million euros ($154.7 million). That beat the IBES Refinitiv consensus analyst estimate of 133.5 million euros.
Earlier this month, the NBA unveiled an expanded multiyear relationship with DraftKings, (DKNG) - Get DraftKings Inc. (DKNG) Report naming the online sports betting company the league's co-official sports betting partner.
The Boston company and the NBA first teamed up in 2019 when DraftKings became an authorized gaming operator for the league.