Tuesday, November 24, 2020
THCP portfolio company Genius Sports Group to go public on NYSEInvestment Activity
Three Hills Capital Partners (“THCP”) is pleased to announce that Genius Sports Group (“GSG”) and dMY Technology Group, Inc. II (NYSE: DMYD) (“dMY II”), a publicly traded special purpose acquisition company, agreed to enter into a definitive business combination agreement, pursuant to which GSG and dMY II will combine. As a result of the business combination, GSG and dMY II shareholders will exchange their shares for shares in a newly formed combined company, which will be publicly listed on the New York Stock Exchange (the “NYSE”). This transaction implies a pro forma enterprise value of approximately $1.4 billion.
GSG, founded in 2000, is a leading sports data technology company that provides innovative and data-driven solutions to the leading regulated sports betting operators as well as the world’s major sports leagues and federations.
THCP originally invested in GSG in July 2015 to back an experienced Founder and CEO, Mark Locke, and help finance strategic acquisitions to transform GSG into a global leader in sports data technology. During the period 2015 – 2018, with the active support of THCP, GSG completed four key acquisitions, entered six new international markets (including the US and Australia) and increased its revenues by nearly fourfold.
In September 2018, THCP orchestrated a sale of the company, including the majority of its stake, to Apax Partners. At the time, THCP retained a minority stake in the company to participate in its significant future upside potential. This included keeping a position on the Board and remaining actively involved, alongside Apax Partners, in defining strategic direction, supporting the business with key management selection, and executing the business combination.
Since 2018, GSG has continued to expand its international footprint and develop innovative new technologies and services. Today, GSG is a global, leading provider of sports data, content and technology, providing data on over 240,000 events each year. The company maintains long-term partnerships with over 500 sports organisations globally, including the NBA, NCAA, PGA Tour, FIFA, English Premier League, and NASCAR.
Leks de Boer, Partner at THCP, commented: “GSG’s impressive growth is a testament to THCP’s approach of identifying and providing ongoing and active financial partnership to market leading businesses with exceptional management teams. The proposed combination with dMY II will provide GSG with a strong balance sheet and the growth capital needed to further accelerate its international expansion. We look forward to continuing our support of the team.”
Mauro Moretti, THCP Founder and Chairman of the Investment Committee, commented: “It has been a pleasure to work with Mark and his team – high class professionals driven by strong ethics, a unique vision and significant ambition – over the years. When we first met the team in 2015, we had the opportunity to partner with the company at an inflexion point, supporting GSG’s journey from a small-medium enterprise based in London, to a global market leader, and now onwards to a listing on the NYSE. This is truly one of the partnerships that we are most proud of in recent years. We will continue to follow GSG’s next moves with admiration, especially as the business cements its position as a market champion in the sports world.”
Mark Locke, CEO of Genius Sports Group, said: “Mauro, Leks and the THCP team have been instrumental in our rapid growth and continued success around the world. They have been true partners in our journey from modest beginnings, to the nexus of the technology, media and gaming ecosystem. THCP’s unerring commitment, support and guidance has created possibilities for Genius Group that might not have otherwise existed. I am grateful for our ongoing relationship, as we build further on the foundations that THCP helped create.” Completion is anticipated in Q1 2021 and is subject to the approval of dMY II’s shareholder and other customary closing conditions.