A subsidiary of one of Genius Sports' major shareholders and former owner, Apax Partners LLP, will sell 20,000,000 shares in the business.
The underwriter of the sell-off, Goldman Sachs & Co, will have the option of purchasing an additional 3,000,000 shares worth $18,120,000. The option will end after a 30-day period.
The stock to be sold off is worth – as of close of trading on 13 September – $120.8m (£97.1m/€113.1m).
The total shares on the table represent just over 10% of all of Genius’ 216,627,899 shares.
Following the announcement of the stock sell-off, Genius’ share price has fallen 10.2% to $5.4 per share since trading opened. The supplier will not receive any of the proceeds from the sale.
Former owner opts to sell stock
Apax is the provider’s former owner, having purchased the company from Three Hills Capital Partners in July 2018.
Funds advised by Apax kept hold of the business for over two years prior to Genius going public on the New York Stock Exchange via an agreement with special purpose acquisition company dMY Technology Group.
Genius sees strong revenue growth in Q2
The sell-off comes after a bumper Q2 for Genius, which saw its betting technology division drive overall revenue growth. Revenue for the three-month period stood at $86.8m, up 22.1% from the previous year.
The business highlighted improvements in its event content segment and increased business with its existing clients as responsible for the rise.
Yesterday (13 September) Genius announced a new partnership with the Snapchat parent company Snap.
Under the deal, the provider will power Snap’s augmented reality offering Snapchat Lenses with its NFL Official League Data. Genius is the official distributor of the league’s official statistics and Next Gen Stats data.