Fanatics has raised around $700 million bringing the value of the sports apparel and collectibles company to $31 billion as it looks to expand into additional business lines, according to a person familiar with the matter.
The fundraising round was led by private equity firm Clearlake Capital Group and joined by LionTree, with existing investors including Silver Lake Management, SoftBank Group Corp and Fidelity Management & Research also taking part, the source told Reuters.
Fanatics was previously valued in March at $27 billion and it is expected to have about $8 billion in annual revenue next year.
READ: Fanatics unveils new CFO for sports betting unit amid plans to launch in January 2023
Following this fundraising, Fanatics will end the year with more than $2 billion in cash, said the sources.
Moves into sports betting are set to come next year, while a push into other areas such as media and ticketing have been rumoured. The group has already expanded into sports collectibles by scooping up rights to sports leagues and acquiring cardmaker Topps for about $500 million in January.
In October, it unveiled the appointment of a chief financial officer for its sports betting unit as it moves forward with plans to launch the highly anticipated division in January 2023.
The Jacksonville, Florida-based company has also bolstered its core merchandise business, which still makes up the majority of its revenue.
In February, it joined with a group of celebrity investors to buy fellow sports-apparel seller Mitchell & Ness, best known for its throwback jerseys.
The company's executive chairman Michael G Rubin said earlier in the year he’s on a mission to conquer the sports e-commerce sector and beyond.
“I’m 100% locked into making Fanatics the most incredible digital sports platform in the world,” Rubin said at a conference in March.
Contact Jeremy at jeremy@proactiveinvestors.com