Emerald Media, a media entertainment investment platform set up by US private equity giant KKR, has invested $80 million to pick a significant minority stake in Global Sports Commerce, a Chennai-based sports technology and management company, through a combination of primary and secondary investments.
The deal, which is likely to get announced as early as Friday, will mark Emerald’s largest investment in India after KKR pumped in $300 million in 2015 to set up the platform. The proceeds of the fund will be used for inorganic acquisition opportunities, develop next generation technologies for the sporting eco-system, and expand its operations in Asia and the US.
The aggregate $80-million investment will include the secondary purchase of Asia-focused private equity firm FidelisWorld’s stake in Techfront, a unit of GSC. Fidelis- World, which had invested in Techfront in 2014, will be fully exiting the business as part of the current transaction.
Asia-focused PE firm ADV Partners, which invested in GSC in 2015-16, will continue to hold a significant minority stake in the company.
Veda Corporate Advisors advised the company on the transaction.
This investment further contributes to the consolidation of sports commerce worldwide via use of technology, and it helps us expand our international footprint, said MS Muralidharan, CEO of GSC.
Founded in 2003 and headquartered in Singapore, GSC has significant presence in India. The company has 13 subsidiaries with offices in 10 countries, its website showed. It serves leading global BSE 0.00 % sports organisations such as stadiums, brands and holders of various rights. According to industry sources, the company has a revenue of over $90 million with more than 25% margins at the EBITDA level.
“The introduction of digital technology into the world of sports has helped amplify fans’ appreciation of the games and has helped to create an alternative source of revenue for clients, besides the games themselves. GSC has transformed sports tech in India and across the globe by enhancing the way sports franchises interact with fans and capitalising on the ardour of their fan base,” said Rajesh Kamat, Managing Director, Emerald Media.
Source: Economic Times