Apax Exits Genius Sports: A Successful Six-Year Partnership Concludes

Genius Sports announced that Apax has completely monetized its equity interest in the company, meaning Apax no longer holds any shares in the data, technology, and broadcast firm.

The financial specifics of this transaction have not been disclosed.

Upon the announcement, Genius Sports shares initially dropped by 2.4% and are now trading at $5.36 per share.

Apax's involvement with Genius Sports began in July 2018 when it acquired a majority stake from Three Hills Capital Partners.

For over two years, Apax held a significant interest in the company.

This holding was reduced to about 28% when Genius Sports went public on the New York Stock Exchange in mid-2021 following its merger with special purpose acquisition company dMY Technology Group.

In September 2023, Apax further reduced its stake, selling 20 million shares for $120.8 million (£93.8 million/€111.4 million).

This sale represented over 10% of Genius Sports' total shares at that time.

Subsequent sales in the first quarter of this year reduced Apax's holding from 31 million to 20 million shares, all of which have now been sold to new and existing shareholders.

Mark Locke, co-founder and CEO of Genius Sports, commended Apax for being a "tremendous" partner over the past six years.

"We are grateful for their valuable insight and expertise over the last six years," Locke stated.

"Today marks the conclusion of a very successful partnership. We look forward to welcoming this next chapter with the ongoing support of our high-quality institutional shareholders."

In May, Genius Sports revised its financial forecast for the year, projecting revenue to reach $500 million, with adjusted EBITDA at $82 million, up from previous estimates of $480 million and $75 million, respectively.

This optimistic outlook followed a strong first quarter performance, where the company reported group revenue of $120 million, a 23.1% increase from the first quarter of 2023 and 2.5% higher than earlier estimates.

Betting technology, content, and services revenue grew by 14% year-on-year to $73.9 million.

Despite a group net loss of $25.5 million, nearly unchanged from $25.2 million in the first quarter of 2023, Genius Sports exceeded its adjusted EBITDA guidance, reaching $7 million, a 14.5% decrease year-on-year but surpassing the earlier projection of $6 million.