The valuation of the fanatics doubles after the new financing round to 12.8 billion US dollars
Fanatics Founder / Executive Chairman Michael Rubin attends the Fanatics Super Bowl Party on February 2, 2019 at the College Football Hall of Fame in Atlanta, Georgia.
Mike Coppola | Getty Images
The sporting goods powerhouse Fanatics has not yet finished raising money.
The company recently raised $ 320 million in new funding, representing a valuation of $ 12.8 billion, up from $ 6.2 billion last August. Fanatics will use the funds to expand its vertical trading division, investigate additional mergers and acquisitions, and expand internationally, according to someone familiar with the company’s planning.
The round was supported by current investors, including private equity firm Silver Lake, Fidelity Investments, Franklin Templeton, Neuberger Berman, Thrive Capital and Major League Baseball. Although Fanatics originally said the Series E would be the final round of funding, investors came to the company with the offer.
Fanatics are drawn to its growth and ability to reach 80 million sports consumers. The company will use the data collected from customers to benefit other business ventures. Fanatics global e-commerce business revenue is up 30% year over year and revenue is expected to exceed $ 3 billion this year.
Last month, the company launched Fanatics China and joined Hillhouse Capital, an Asian-focused private equity fund with companies from the Asian e-commerce and retail sectors. Fanatics expects China to be worth over $ 1 billion.
Fanatics used funds from its $ 350 million donation last August to purchase competing businesses, including Minnesota-based WinCraft, which sells home, office and automotive sports goods.
The National Football League and MLB invested $ 150 million in Fanatics in 2017. Both leagues received a capital increase of $ 100 million in Fanatics in 2020. Speculation continues to suggest that the company will seek an IPO at some point.
When asked about going public on CNBC’s Squawk Box, Michael Rubin, Executive Chairman of Fanatics, said on Wednesday, “I think going public is an option for us that we’re talking about a lot, but we’re not focusing on that today. It is us I think we are well funded and have a lot of growth capital to keep growing. “