Sports platform Fanatics has raised $700 million in a new financing round led by private equity firm Clearlake Capital, valuing the business at $31 million, sources told Reuters. The capital raised will be used to fund acquisitions. LionTree and existing investors Fidelity, Sliver Lake and Softbank also participated in the round.
The round marks another investment in the sports field by Clearlake Capital Group, a Santa Monica, California-based investment firm that partially owns Chelsea Football Club.
With the raise, Fanatics will end the year with more than $2 billion in cash, and is expected to generate $8 billion in revenue in 2023, a person who declined to be named told the cited source.
Earlier this year, Fanatics acquired the trading cards and collectibles business of Topps for $500 million, accelerating its plan to launch a sports cards trading business by owning rights with leagues.
Founded by Michael Rubin, Fanatics has expanded from a sports retailer to a digital sports giant with a cards trading and sports betting business. It has raised nearly $5 billion in equity from investors to date, according to Crunchbase data. The company was previously valued in march at $27 billion.
The company plans to launch a sports betting and gaming platform for the upcoming football season in major U.S. states in the first quarter. The funding round will provide the firm with new ammunition as it expands into sports betting and additional business lines.