The sports tech M&A market in the last 5 years experienced fluctuations in both deal volume and transaction value. We called 2023 ‘The year of consolidation’, 2024 has seen more but nothing like last year.
Total M&A deals in for the period 2020-2024 amounted to $26.3 billion across 263 transactions. The highest peak occurred in 2023, when the sector saw deals worth $10.9 billion, increasing consolidation across the industry. However, this momentum was tempered in 2024, with a $4.36 billion in disclosed deal values.
Among the major transactions in the past year, noteworthy deals included:
- Snaitech (Italy) was acquired by Flutter Entertainment (Ireland) for $2.6 billion, further consolidating the gaming and betting sectors.
- Jackpocket was acquired by DraftKings for $750m, adding the leading digital lottery app in the United States to their portfolio of companies
- ASM Global and Topgolf, two U.S.-based companies, were also involved in large-scale deals, emphasizing the strategic consolidation within the hospitality and sports entertainment industries.
These acquisitions illustrate how larger players in gaming, betting, and fan engagement sectors are actively acquiring smaller companies to strengthen their tech offerings and position. Looking to grow through acquisition rather than organic scaling.
Sports Tech Sector and Geographic Trends
The U.S. remained the dominant geography for both acquirees and acquirers, accounting for over 16.6 billion in total disclosed deals. Meanwhile, European countries like Italy and the UK also experienced notable acquisitions, with Ireland’s Flutter Entertainment making significant moves in the gaming space.
From a sector perspective, the largest share of M&A deals in 2024 involved companies focused on Activity & Performance (35.4% of the total), followed by Fans & Content (27%). These trends reflect the ongoing demand for solutions that enhance fan engagement and performance analytics.
Business Models: B2B vs. B2C
The breakdown by business model shows that both acquirers and acquirees predominantly fall within the B2C category. However, B2B businesses (around 40% of total deals) are also seeing substantial activity, particularly in areas such as sports management platforms and enterprise performance tools. The demand for solutions that streamline operations and enhance business services has also been increasing equally.
Key Sports Tech Trends Driving M&A Activity
- Fan Engagement and Content Platforms: Startups focused on Web3, AR/VR, and interactive fan content have been especially attractive.
- AI and Data Analytics: The integration of AI in sports performance analysis and real-time data platforms has become a cornerstone of acquisitions.
- Health, Wellness, and Fitness Tech: The pandemic brought unprecedented growth in fitness tech, particularly wearables and mobile applications focused on performance improvement. M&A activity in this sector remains strong, especially in markets like North America and Europe.
- Esports and Gaming: Gaming and esports continue to be hot areas for investment, with the largest M&A deals coming from this space in 2024.
Conclusion
While overall funding has declined, strategic acquisitions have flourished, with major players looking to expand through innovative acquisitions in key sectors such as AI, fan engagement, and gaming. As we look to the future, the sports tech industry is poised for further consolidation, driven by continued technological advancements, shifting consumer preferences, and the ongoing quest for enhanced performance and fan experiences.
For more detailed insights into the sports tech funding and M&A landscape, look out for the 2024 Global SortsTech VC Report. Contact us for more information.
