Bridgepoint Takeover Infront Sports & Media AG
September 4, 2011
European private equity firm Bridgepoint has reached an agreement to acquire Infront Sports & Media AG, a leading international sports marketing company based in Switzerland, taking 100 per cent of Infront’s shares from Jacobs Holding AG,.
Infront represents more than 120 top sports rights holders and delivering 2,300 event days each year. In 2010, Infront generated revenues of just under $849 million and has more than 20 offices across Europe and Asia and a diversified rights portfolio in winter sports, football and summer sports. It is also a key player in media production handling some of the most complex sports events, including the Fifa World Cup.
In football, it is partner to international and national federations (e.g. the German Football Federation DFB), leagues (e.g. the Italian Lega Calcio) as well as clubs (e.g. A.C. Milan, FC Schalke O4, SV Werder Bremen).
In winter sports, Infront is the undisputed market leader representing six out of the seven Olympic winter sports federations, including FIS for skiing and the IIHF for ice hockey; in motor sports, it is the promoter of the FIM Superbike World Championship. Infront is also one of the leading sports marketing organisations in China where it represents the Chinese Basketball Association – on league and national team level.
Infront Board of Directors chairman Dr Andreas Jacobs said about the acquisition, “We are pleased that after an extensive strategic review we have found a new investor which will actively contribute to Infront’s ambitious growth plans which we believe will be of great benefit to our esteemed clients as well. We wish Bridgepoint and Infront well on behalf of the current shareholders.”
Bridgepoint’s experience in the sports sector includes its current investment via another fund in Dorna, the global rights holder to the FIM MotoGP Motorcycle World Championship, as well as a successful track record in TV production that includes All3Media in Great Britain, producer of Formula One in the UK and Marathon Group in France, respectively sold in 2006 and 2007.
Xavier Robert, Partner at Bridgepoint in Paris, said: “Infront is a scarce asset in an attractive sector with a strong management team and a unique competitive position. It has a well diversified portfolio of prestigious and operationally complex events that position it well to outperform the market.
“Not only are there continued growth prospects with current rights holders, but also the potential for strategic expansion in terms of geography, products and services.
“Based on the existing strategy and our combined experience, we expect Infront to continue to grow as it captures new opportunities in the international sports entertainment market, ultimately establishing Infront as the global number one sports marketing group.”
Bridgepoint will encourage the further development of Superbike and MotoGP although both series will continue to be organised and managed separately. Dorna and Infront Motor Sports are each fully committed to the long-term relationship with the Fédération Internationale de Motocyclisme (FIM) as their strategic partner as well as the successful partnerships with teams and manufacturers, circuit owners, sponsors, broadcasters and other stakeholders of the series.
Infront’s President & CEO Philippe Blatter said, “Bridgepoint is the strong new strategic investor we have been looking for. The company is fully committed to actively contribute to Infront’s ambitious expansion plans and to support our solid international team – Bridgepoint shares our long-term vision.
“We are convinced that the new and strengthened ownership structure will not only form an even stronger basis for the future success of Infront, but will be of great benefit to our valued partners and clients. With Bridgepoint as our shareholder, we are in a position to tackle many additional opportunities now presented by the market while remaining highly focused on the continued delivery of high quality services to our clients and partners in all areas of our existing business.”
The global sports rights market is estimated to be worth $121 billion in 2011, with the global market for media and sponsorship rights representing $56 billion.