The sports technology sector witnessed a booming first half of 2024, with 589 financial deals generating a total valuation of $34.2 billion, according to research from investment bank Drake Star Partners. This surge was driven by an increase in mergers and acquisitions (M&A) and private financing deals.
A record 225 M&A deals, valued at $27.3 billion, took place during the period, marking the highest number of transactions in the first half of any year. The largest of these was private equity firm Silver Lake’s $13 billion acquisition of sports and entertainment agency Endeavor. Other significant M&A deals included Liberty Media’s $4.6 billion purchase of MotoGP rights holder Dorna Sports and the $8.5 billion merger between Disney Star and Reliance Industries.
In the private financing space, 342 deals were completed, with early-stage funding dominating over 80% of the total. Wearable technology companies led the charge, generating 42% of the value in private transactions. The biggest funding round came from US wearable tech company Riddell, which raised $400 million in April.
The report highlighted that M&A activity in the first half of 2024 tripled compared to the second half of 2023, largely due to a rise in smaller, mid-sized deals. In contrast, private financing remained relatively flat compared to the previous period, although media company Minute Media and YouTube group Dude Perfect raised $100 million each, contributing to the total $1.9 billion in capital raised.
Drake Star identified artificial intelligence (AI), fan engagement, performance analytics, ticketing, and venue management as standout sectors within both M&A and financing.
Looking ahead, the study noted that a significant amount of capital raised in 2023 remains undeployed, suggesting a strong potential for increased investment in the sports tech ecosystem in the coming year. M&A activity is expected to remain robust, and improving market conditions could see more sports tech companies pursuing initial public offerings (IPOs) in 2025.