Sportradar Group AG (SRAD) shares surged 5.32% in pre-market trading on Wednesday following two major announcements that signal strong growth prospects for the sports technology company.

The company revealed it has entered into a definitive agreement to acquire IMG ARENA and its global sports betting rights portfolio from Endeavor Group Holdings. This strategic acquisition is expected to enhance Sportradar's content offerings in key sports like tennis, soccer, and basketball. Importantly, the deal structure requires no financial consideration from Sportradar, instead providing the company with $125 million in cash. The acquisition is anticipated to accelerate Sportradar's revenue, adjusted EBITDA, and cash flow growth while being immediately accretive to adjusted EBITDA margins.

Additionally, Sportradar reported strong financial results for Q4 and full-year 2024. The company's revenue for 2024 increased 26% year-over-year to €1,107 million, exceeding its full-year guidance. Adjusted EBITDA rose 33% to €222 million, with margins expanding to 20.1%. Looking ahead, Sportradar provided an optimistic 2025 outlook, projecting revenue growth of at least 15% and adjusted EBITDA growth of at least 26%.

Investors are reacting positively to these developments, viewing them as indicators of Sportradar's strengthening market position and improved financial performance in the rapidly growing sports technology and betting industries.