Sportradar Group AG (NASDAQ: SRAD) stock surged 5.32% in pre-market trading on Wednesday following the company's announcement of a strategic acquisition and the release of its fourth-quarter earnings report.

The sports technology company revealed it has entered into a definitive agreement to acquire IMG ARENA and its global sports betting rights portfolio from Endeavor Group Holdings, Inc. This acquisition is expected to enhance Sportradar's content and product offerings, particularly in tennis, soccer, and basketball - the top three most bet-on global sports. The deal, structured uniquely, requires no financial consideration from Sportradar and is anticipated to be immediately accretive to the company's adjusted EBITDA margins.

Additionally, Sportradar reported strong fourth-quarter results, with revenue increasing 22% year-over-year to €307 million, surpassing analyst expectations of €294 million. The company's adjusted EBITDA for Q4 rose 53% to €61 million, with the margin expanding to 19.7%. For the full year 2024, Sportradar's revenue grew 26% to €1,107 million, with adjusted EBITDA up 33% to €222 million.

Looking ahead, Sportradar provided an optimistic outlook for fiscal 2025, projecting revenue of at least €1,273 million, representing year-on-year growth of at least 15%, and adjusted EBITDA of at least €281 million, up 26% from the previous year. The company also anticipates further margin expansion and improved free cash flow conversion.