In a deal that brings together two of the biggest names in
video enhancement and virtual insertion graphics for live sports, SMT
(SportsMEDIA Technology) has acquired Sportvision. The new entity combines
SMT’s live-data–integration technology, real-time graphics presentation, and
video-enhancement solutions with Sportvision’s extensive
virtual-graphics/insertion portfolio, which includes sports-TV staples the
Virtual Yellow 1st & Ten line, PITCH/fx MLB pitch/strike-zone–tracking
system, and NASCAR tracking and pointer system, as well as virtual-signage
insertion. The Durham, NC-based SMT will acquire a 100% interest in
Chicago-based Sportvision, which will be rebranded as SMT. The acquisition agreement
closed on Oct. 4 and has been approved by shareholders of both companies.
Financial terms of the transaction were not disclosed.
“SMT has always had tremendous respect for the applied
science, the cutting-edge technology, and the creative innovation that runs
through the DNA of Sportvision. While other companies claim to have had a
game-changing impact on how sports are presented, Sportvision enjoys an
unparalleled and industrywide reputation for delivering actual game-changing
solutions,” says SMT founder/CEO Gerard J. Hall. “Even though we have been
competitors, I can’t imagine any other company having more appreciation for
Sportvision’s legacy. And, from a strategic standpoint, this acquisition makes
a lot of sense because through it, SMT will gain access to critical,
state-of-the-art, Sportvision technology components that will accelerate SMT’s
plans for expanding current product and services offerings and accelerate SMT
plans for developing next generation products, services, and platforms for our
clients. ”
Bringing Sportvision Under the SMT Umbrella
According to the terms of the deal, Hall, who founded SMT in
1988, will remain CEO and controlling shareholder of the expanded SMT. Although
Sportvision’s Chicago administrative office will close, its technology facility
in Fremont, CA, will remain intact. SMT will now have U.S. operating divisions
in Durham, Fremont, and Jacksonville, FL.
“It’s no surprise that Sportvision’s technology team is a
big part of the acquisition,” says Hall. “The Fremont, CA, office will stay
business as usual. The biggest thing is to keep our clients happy, so we are
going to make sure the Fremont office stays as efficient and successful as
possible. We are fully expecting Fremont will operate as is for the foreseeable
future.”
An Expanded Customer and Tech Portfolio
The combined Sportvision-SMT portfolio will now comprise
hundreds of major U.S. sports events, as well as major sports broadcasters,
such as CBS Sports, ESPN, Fox Sports, NBC Sports Group, and Turner Sports.
In addition, SMT has designed and developed and currently
supports the official scoring, statistics, and onsite live-presentation systems
for the NBA, the NHL, the PGA TOUR, NASCAR, the CrossFit Games, all four golf
majors, and the four tennis slams: the US Open, Wimbledon, Roland Garros, and
the Australian Open.
Meanwhile, Sportvision solutions have been deployed on
countless live sports telecasts, including NFL, MLB, NASCAR, the Olympic Games,
NHL, PGA TOUR, LPGA Tour, NBA, NCAA, WTA, MLS, IRL, and X Games.
“I am pleased that Sportvision has found a great acquirer in
SMT. They are a leader in the sports-technology industry, and they have been
very successful across many decades in the business,” said Sportvision CEO Hank
Adams in a statement. “Sportvision has a terrific collection of existing
products and innovative technologies under development. Combining these with
SMT’s capabilities will provide fans, teams, and media companies with
exceptional insights and value.”
Building the Brain Trust
With the Sportvision acquisition, SMT expands not only its
client base but also its core technology arsenal (Sportvision has received more
than 70 patents) and R&D team. SMT is currently developing platforms and
paradigms for the seamless use of live, real-time, object-tracking technology
in sports production, visualization, and analytics. Despite being direct
competitors for several years, Hall sees the two companies’ technologies as
complementary and believes sports-broadcast and sports-event customers will
begin to see benefits of the marriage almost immediately.
“Having best-in-class [player-tracking] systems that combine
infrared with ultra-wide-band, RFID, or image-based tracking is the [goal]
here. We feel like the consolidation of SMT and Sportvision’s technologies
gives us a great opportunity to create those next-gen products,” says Hall.
“This is a watershed moment for SMT and a watershed moment for the industry. By
combining the best of SMT with the best of Sportvision – and operating with far
greater technical and financial efficiency – SMT can ensure that cost-effective
and innovate products, services, and solutions will be available to our
customers and clients for years to come. The innovation is going to be very
interesting, and we have a lot of things in the pipeline.”
SMT’s acquisition of Sportvision also follows on the heels
of SMT’s recently announced hiring of 30-year ESPN veteran Jed Drake to lead
its emerging technology initiatives.
Reacting to an Evolving (and Growing) Industry
The SMT-Sportvision deal arrives at a time when the
player-tracking and data-virtualization business is exploding. All four major
U.S. sports leagues have committed to player-tracking systems in recent years,
and broadcasters are increasingly integrating the technologies into their TV
and streaming productions.
“We see the market for tracking objects in space only
getting bigger, and we now have the best technology in the world to do that,”
says Hall. “From Sportvision’s image-tracking engine, which they have heavily
invested in, to the infrared tracking technology that Sportvision just deployed
at the World Cup of Hockey to our ultra-wide-band and RFID-chip tracking and
our image-based tracking, we feel like we have created a truly best-of-breed
[offering] under the SMT umbrella.”
In addition, the announcement comes on the heels of another
high-profile announcement in player tracking: the NBA has selected SportsData
and Second Spectrum for a league-wide player-tracking system beginning with the
2017-18 season. The two companies replace STATS’ SportVU system, which had been
instituted across all NBA arenas in 2013 (STATS recently rebranded following
the loss).
Odds and Ends of the Deal
The transaction was unanimously approved by SMT’s board of
directors and was financed through a minority round investment by Eldridge
Industries, Vicente Capital Partners, and SMT CEO Gerard J. Hall. Eldridge
Industries invests in businesses across multiple industries with a focus on
finance, media, sports, and real estate. It’s media investments include Dick
Clark Productions, The Hollywood Reporter, andBillboard and is led by Chairman
and /CEO Todd Boehly, a principal owner of the Los Angeles Dodgers. Vicente
Capital Partners, a current SMT investor dating from its initial minority
investment in 2010, is a Los Angeles-based private-equity fund specializing in
providing equity capital to privately held growth companies across North
America.
Lazard Middle Market provided SMT with financial advisory
services throughout the transaction. Pepper Hamilton of Philadelphia, led by
Matt Adler, provided legal services to SMT for all aspects of the financing and
the transaction.
SMT’s current banking partner, Raleigh, NC-based Fifth
Third, was instrumental in the funding of the acquisition. SMT is a privately
held company with headquarters in Durham and operations in Jacksonville and
London.