Negotiations between providers of sports data and integrity solutions Sportradar and Horizon Acquisition Corp. II would require more time complete according to someone familiar with the conversations, reports Sportico.
In-depth negotiations, possible agreement within a week
Switzerland, headquartered at Sportradar i special purpose vehicle (SPAC) managed by the co-owner of the franchise from Major League Baseball (MLB) Los Angeles Dodgers , Todd Boehly, reportedly started merger negotiations in March as part of a valued deal $ 10 billion as a path to publicizing your sports data and integrity company.
While the signed Letter of Intent between Horizon and Sportradar does not guarantee a deal, and despite slow progress in the negotiations, unnamed sources from both sides believe a formal agreement is within reach for the coming week.
Two people who were granted media anonymity due to the private nature of the talks revealed that Sportradar and SPAC recently entered an information sharing phase with institutional investors, as both companies plan to sell capital before going public in private investment in public capital (PIPE) .
PIPE, which is quite common in SPAC acquisitions , most likely will be part of the transaction which, upon completion, will be one of the largest SPAC valuations and one of the largest for a sports entity. One source says the talks between Sportradar and Horizon have just come to the point of private financial disclosures.
A possible reason for an extension of the negotiation period, which usually takes between 2 and 8 weeks in SPAC deals, could simply mean that both companies need more time to finalize the deal or simply reconsider some aspects of it due to recent guidelines Securities and Exchange Commission (SEC) on Accounting SPAC and the need to simplify the language for regulators.
SPAC lose the appeal of investors
Fury in SPAC, the space from the first months of the year, which resulted in the creation of over 400 new entities by March, began to fade away, reducing the number of recently submitted applications to just a few, due to the reluctance of institutional investors to participate in this type of transaction, as well as the efforts of regulators to manipulating emotions.
Established in 2001, Sp. ortradar sells sports data to sports media and sports betting operators around the world and has investors among its investors National Football League (NFL) and also a trio National Basketball Franchise Owners Association (NBA) , Mark Cuban, Ted Leonsis and Michael Jordan.
Horizon Acquisition Corp. II is one of several SPACs led by Todd Boehly, majority owner of Connecticut-based Eldridge Industries, which also has a Los Angeles Dodgers limited partnership and a venture capital investment in DraftKings.