Fanatics Raises $320m And Doubles Valuation
Fanatics has announced a new round of investment, raising some $320 million (£233 million) at a $12.8 billion (£9.3 billion) valuation.
The company, which runs e-commerce and retail platforms for the likes of Manchester United, Chelsea and Paris Saint-Germain, as well as US sports leagues the NFL and the NBA, says the figure is more than double its previous valuation of $6.2bn, from just over six months ago.
The new round of investment was led by private equity firm Silver Lake together with Fidelity, Neuberger Berman, Franklin Templeton, Thrive Capital, Blackstone and MLB – all of which are current Fanatics investors.
The company says it will use the investments to scale its ‘vCommerce (virtual commerce) model’ and maximise its ‘financial flexibility’ in a bid to pursue rights acquisitions and international expansion, as well as future business opportunities.
A Fanatics spokesperson wouldn’t rule out the prospect of an IPO in the future: “While an IPO is clearly an available option to us,” said the person, “there is no update on any timeline.”
“Our focus remains on building a great global company and strengthening our vertical commerce business model.”
Since its last round of funding six months ago, Fanatics has acquired headwear brand Top of the World, and licensed sports hardgoods company WinCraft to increase its presence from apparel only to also include other verticals.
It has also looked to expand internationally with the launch of Fanatics China as part of a joint venture with private equity firm Hillhouse Capital.
