Illustration by Lorenzo Gordon
Sports tech has been one of the busiest corners in the tech market, with the sector seeing more than 100 mergers & acquisitions deals in the second quarter alone, according to a new market analysis by Drake Star.
Drake Star, a technology-focused investment bank, counted 105 M&A deals in the spring quarter ending June 30, headlined by the $9.3 billion acquisition of WWE by Endeavor Group. But even without including the blockbuster wrestling deal, M&A activity handily eclipsed volume and dollar amounts seen in each of the past four quarters, according to the Drake Star report.
“While a lot of segments have been slowing down, because of low deal volume and valuations, sports tech has been the flag bearer in terms of having an enormous amount of activity,” Mohit Pareek said in a phone call. Pareek is a Los Angeles-based principal at Drake Star and one of the report’s authors. “It’s a pretty hot space having a lot of acquisition activity, big players are active, all the private equity platforms are active. Sports has been growing the most over the past few years.”
Other sizable M&A deals include the $1.25 billion purchase of IMG Tennis Academy by global investment bank BPEA EQT and the $925 million buy of Polish sportsbook operator STS Holdings by Entain C