Sports Technology Market Update – August 2023

Heightened Fan Immersion Drives Sports Technology Market M&A and Financing Activity

Capstone’s latest Sports Technology Market Update reports that M&A activity in the sector has defied the slowdown in the broader middle market to grow 2.2% year-over-year, with strong demand for fitness technology and fan engagement experiences driving consolidation and financing activity.

Generation Z sports fans are driving demand for immersive features, such as virtual and augmented reality experiences. Artificial intelligence (AI) has also permeated the Sports Technology market, with AI-generated revenue driving growth in the space. Both of these developments are expected to shape sector activity moving forward and drive continued M&A opportunity for leading sector players.

“Consumer demand for sports entertainment and technology continues to evolve and stand out in a challenging economic environment. The landscape is consolidating as acquirors seek to diversify their sports, media, and technology portfolios and increase their scale and reach. M&A transaction volume and multiples in 2023 continue to maintain their momentum after a significant rise in 2021 and 2022,” said Capstone Director Peter Bailey, the lead contributor in the newly released report.

Also included in this report:

• How artificial intelligence (AI) has permeated the sector and how it’s expected to reshape activity and demand moving forward.
• Why average transaction multiples in the sector have remained robust compared to the broader Consumer industry and middle market as a whole.
• How sector financing activity has fared through YTD and what geography has received the lion’s share of deployed funding.

Capstone Partners’ Consumer Investment Banking Team provides M&A, capital formation, and financial advisory services to the owners of middle market businesses in the consumer and retail industries. Our team partners with leading mid-to-large sized business in the Sports Technology market that serve growing end-markets. For more information on Sports Technology market trends featured in this report or to speak with one of our Consumer Investment Banking Team members about how to grow, value, and/or sell your company, we are here to help. Contact us today to start a conversation.