Genius Sports Announces Pricing of Public Offering

Rhea-AI Summary

Genius Sports (NYSE: GENI) has announced the pricing of its underwritten public offering of 17,647,059 ordinary shares at $8.50 per share. The company expects to raise approximately $144 million in net proceeds after deducting underwriting commissions and offering expenses.

The offering, expected to close on January 16, 2025, includes participation from existing shareholders Caledonia and Wellington Management, along with new investors. BTIG is serving as the lead book-running manager, with Goldman Sachs and Deutsche Bank Securities as book-running managers.

The company plans to use the proceeds for general corporate purposes, potentially including acquisitions or investments in complementary businesses, technologies, or assets, although no specific agreements are currently in place.

Positive

• Expected net proceeds of $144 million strengthening the company's financial position
• Strong participation from existing major shareholders indicating confidence
• Multiple tier-1 investment banks involved in the offering

Negative

• Significant shareholder dilution through issuance of 17.6 million new shares
• No specific allocation plan for the proceeds indicating lack of immediate strategic initiatives

Insights

Investment Banker

This $144 million equity raise represents a significant capital infusion for Genius Sports, priced at $8.50 per share with 17.6M new shares being issued, representing approximately 7.8% dilution to existing shareholders. The pricing reflects a modest 5.5% discount to the previous closing price, indicating healthy institutional demand. The participation of major shareholders Caledonia and Wellington Management sends a strong vote of confidence in the company's trajectory.

The strategic rationale appears focused on M&A opportunities, with the company explicitly mentioning potential acquisitions of complementary businesses and technologies. In the sports data and technology space, this war chest positions GENI to potentially acquire smaller competitors or technology providers to enhance their product suite. The timing aligns with industry consolidation trends and GENI's push to strengthen its market position.

The selection of BTIG as lead underwriter, supported by Goldman Sachs and Deutsche Bank, suggests a well-coordinated institutional placement. The broad syndicate of co-managers indicates a strategic effort to ensure wide distribution among both existing and new institutional investors.

Market Research Analyst

The successful pricing of this secondary offering demonstrates institutional investors' appetite for exposure to the sports betting data and technology sector. The participation of existing major shareholders is particularly noteworthy as it suggests they see additional upside potential despite the dilutive effect of the offering.

For context, this capital raise strengthens GENI's balance sheet at a important time when sports betting markets are expanding globally and demand for data analytics and technology solutions is accelerating. The company's timing appears strategic, capitalizing on favorable market conditions and its recent operational momentum to secure growth capital.

The offering's structure and execution reflect sophisticated financial engineering - the F-3ASR shelf registration utilized here allows for rapid market execution, while the diverse underwriting syndicate suggests broad institutional distribution. This could potentially improve trading liquidity and institutional ownership profile going forward.

LONDON & NEW YORK--(BUSINESS WIRE)-- Genius Sports Limited (NYSE: GENI) (“Genius Sports,” the “Company,” “we” or “our”) announced today the pricing of an underwritten public offering of 17,647,059 ordinary shares, par value $0.01 (the “Ordinary Shares”), by the Company at a price to the public of $8.50 per Ordinary Share. The offering is expected to close on January 16, 2025, subject to the satisfaction of customary closing conditions.

The Company estimates the net proceeds from the offering will be approximately $144 million, after deducting the underwriting commissions and estimated offering expenses. The Company currently expects to use the net proceeds from this offering for general corporate purposes, which may include the acquisition or investment in complementary businesses, technologies or other assets, although the Company currently has no agreements or understandings with respect to any such acquisitions or investments.

The offering included participation from Caledonia and Wellington Management, among other top existing shareholders as well as new investors.

BTIG is acting as the lead book-running manager for the offering. Goldman Sachs and Deutsche Bank Securities are acting as book-running managers for the offering. Oppenheimer & Co., Citizens JMP, The Benchmark Company and Craig-Hallum are acting as co-managers for the offering.

The offering is being made pursuant to an effective registration statement (including a prospectus) on Form F-3ASR previously filed with the Securities and Exchange Commission (the “SEC”) on May 8, 2024. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and will be available on the SEC’s website located at www.sec.gov. Alternatively, copies of the registration statement and accompanying prospectus supplement may be obtained from: BTIG, LLC, 65 East 55^th Street, New York, NY 10022, telephone: (212) 593-7555.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Genius Sports

Genius Sports is the official data, technology and broadcast partner that powers the global ecosystem connecting sports, betting and media. Our technology is used in over 150 countries worldwide, creating highly immersive products that enrich fan experiences for the entire sports industry.

We are the trusted partner to over 400 sports organizations, including many of the world’s largest leagues and federations such as the NFL, EPL, FIBA, NCAA, NASCAR, AFA and Liga MX.

Genius Sports is uniquely positioned through cutting-edge technology, scale and global reach to support our partners. Our innovative use of big data, computer vision, machine learning, and augmented reality, connects the entire sports ecosystem from the rights holder all the way through to the fan.

Forward-Looking Statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. All statements other than statements of historical facts are forward-looking statements. These forward-looking statements include information about our possible or assumed future results of operations or our performance. Words such as “expects,” “intends,” “plans,” “believes,” “anticipates,” “estimates,” and variations of such words and similar expressions are intended to identify such forward looking statements. Forward-looking statements in this press release may include, for example, statements about the consummation of the offering. Although the Company believes that the forward-looking statements contained in this press release are based on reasonable assumptions, you should be aware that many factors could affect our actual financial results or results of operations and could cause actual results to differ materially from those in such forward-looking statements, including but not limited to: risks related to the completion of this offering; risks related to our reliance on relationships with sports organizations and the potential loss of such relationships or failure to renew or expand existing relationships; fraud, corruption or negligence related to sports events, or by our employees or contracted statisticians; risks related to changes in domestic and foreign laws and regulations or their interpretation; compliance with applicable data protection and privacy laws; pending litigation and investigations; the failure to protect or enforce our proprietary and intellectual property rights; claims for intellectual property infringement; our reliance on information technology; elevated interest rates and inflationary pressures, including fluctuating foreign currency and exchange rates; risks related to domestic and international political and macroeconomic uncertainty; and other factors included under the heading “Risk Factors” in our Annual Report on Form 20-F filed with the SEC on March 15, 2024.

Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Although we believe that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond our control. Actual results may differ materially from those expressed or implied by such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements contained in this press release, or the documents to which we refer readers in this press release, to reflect any change in our expectations with respect to such statements or any change in events, conditions or circumstances upon which any statement is based.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250115371999/en/

Media

Chris Dougan, Chief Communications Officer

+1 (202) 766-4430

chris.dougan@geniussports.com

Investors

Brandon Bukstel, Investor Relations Manager

+1 (954) 554-7932

brandon.bukstel@geniussports.com

Source: Genius Sports

FAQ

How much money will Genius Sports (GENI) raise from its January 2025 public offering?

Genius Sports expects to raise approximately $144 million in net proceeds from the public offering, after deducting underwriting commissions and estimated offering expenses.

What is the price per share for GENI's 2025 public offering?

The public offering is priced at $8.50 per ordinary share.

How many shares is Genius Sports (GENI) offering in its January 2025 public offering?

Genius Sports is offering 17,647,059 ordinary shares in the public offering.

What will Genius Sports use the proceeds from its 2025 public offering for?

The company plans to use the proceeds for general corporate purposes, which may include acquisitions or investments in complementary businesses, technologies, or other assets, though no specific agreements are in place.

Which investment banks are managing GENI's 2025 public offering?

BTIG is the lead book-running manager, with Goldman Sachs and Deutsche Bank Securities as book-running managers. Oppenheimer & Co., Citizens JMP, The Benchmark Company, and Craig-Hallum are acting as co-managers.