Fanatics raised $320 million in a new funding round, which more than doubles the company’s valuation to $12.8 billion, according to sources.
The round was led by Silver Lake together with Fidelity, Neuberger Berman, Franklin Templeton, Thrive Capital, Blackstone, and MLB. All are current Fanatics investors. Investors were attracted to the combination of Fanatics’ current growth and recent acquisitions to strengthen its vertical commerce model and data platform that reaches 80 million fans.
Fanatics plans to use the funds to scale its e-commerce model and financial flexibility to pursue further rights acquisition, additional M&A, international expansion, and future business opportunities.
Asked whether Fanatics was exploring an initial public offering, a Fanatics spokesperson said, “While an IPO is clearly an available option to us, there is no update on any timeline. Our focus remains on building a great global company and strengthening our vertical commerce business model.”
The funding comes as 2020 marked another record year for the company. The current year has seen sales accelerate as with global e-commerce sales ahead more than 30 percent year-over-year since January 1. Fanatics is expecting to do more than $3 billion in revenue in 2021, according to sources.
Since its last funding round six months ago, Fanatics has made a number of moves, including acquiring the college headwear brand Top of the World to add vertical headwear capabilities and the licensed sports hardgoods company WinCraft to build a vertical hardgoods novelty and other non-apparel products division. With the two deals, Fanatics went from being vertical in apparel to vertical in apparel, headwear and hardgoods.
Fanatics also formed partnerships with Lids and Barnes & Noble Education to operate 770 collegiate websites and bookstores. Overseas, Fanatics launched Fanatics China through a joint venture with Hillhouse Capital.
Logo courtesy Fanatics
