Genius Sports will purchase video analytics firm, Second Spectrum, for $200 million. The company does video analytics for leagues such as the NBA, Premier League and Major League Soccer.
The deal will be paid for in stock and cash. Undecided is whether Second Spectrum, whose investors include Clippers owner, Steve Ballmer, will operate as it does now or be rebranded by Genius, according to Yahoo Sports.
The agreement speaks to the growing importance of data to for both sportsbooks and live broadcasts. Second Spectrum’s specialty turns video into data. Clients include the NBA, the Premier league and Major League Soccer. The company has ties to ESPN and the Clippers to improve viewing experiences for basketball and soccer.
“This acquisition supports our long-term strategic vision of utilizing AI tracking, enhanced data insights and transformative technology to revolutionize the sports data landscape for the fans, our customers and sports and media partners,” Genius Sports CEO Mark Locke said in a statement.
In early April, the NFL granted Genius exclusive rights to distribute its official data to sportsbooks across the world. The company also trades on the New York Stock Exchange.
Founded in 2013, Second Spectrum relies on cameras in the venue to track the movement of the ball and players. That video turns into data. Genius could use the data to help its sports betting feeds, especially in-game wagers.
