Versant, which has telegraphed plans for M&A since spinning off from Comcast, has executed an expected sell-off of youth sports digital specialist SportsEngine to another company in the sector, PlayMetrics.
The asset had long been rumored to be on the list of assets Versant was looking to shed. NBCUniversal acquired it in 2016 and it was gradually integrated into other sports and digital properties in the NBCU portfolio. Versant said the transaction reflects its focus on four strategic pillars: business news and personal finance; political news and opinion; golf; and sports and genre entertainment.
Those without a connection to youth sports might find SportsEngine’s value proposition to be a bit of a head-scratcher, but those with a stake in that increasingly revenue-rich arena have no trouble grasping the story. SportsEngine operates a set of software and payments products designed for club teams, youth leagues and tournaments as well as a management platform.
It also streams live events – providing a valuable commodity for families keeping tabs on games across the country – and grew from about 9,000 streamed events three years ago to a projected 200,000 this year.
At Versant’s investor day last December, the outlook for SportsEngine was addressed, and CFO and COO Anand Kini spoke about it again on Versant’ last earnings call in March. “We’re evaluating kind of value maximizing alternatives for that business,” he said. “We see a lot of consolidation in youth sports market-wide, so we think it’s the right time for this review, but we haven’t made a decision yet. Just to be very clear, we like SportsEngine. It’s been a very good business for us…so we’re only going to pursue opportunities that genuinely maximize value for the long term.”
Terms of the deal were not disclosed.
PlayMetrics said the deal will enhance its capabilities as an operating system for all stakeholders in the youth sports ecosystem.
As PlayMetrics looks to marry technology with youth sports, the deal “accelerates that mission further and faster than we could before,” CEO Mike Doernberg said.
Will McIntosh, president of digital platforms and ventures at Versant, called SportsEngine “a high-quality business with a strong offering in the youth sports ecosystem, and we are proud of the platform we’ve built.” The sale, he added, “reflects a strong outcome for Versant and positions SportsEngine for continued growth under PlayMetrics’ leadership.”
