Genius Sports has agreed to buy Legend, a digital sports and gambling media company, in a $1.2 billion transaction. Genius (NYSE: GENI) stock fell about 20% to $6.76 per share immediately after the market opened Thursday. It closed 27% lower at $6.19 per share.
Genius will pay $900 million upfront, including $800 million in cash and $100 million in stock. The deal also includes an earnout of up to $300 million, which will be distributed over two years once the transaction is completed. The transaction, the largest acquisition in Genius Sports history, is expected to close in the second quarter of 2026, subject to customary closing conditions.
Genius is financing Legend’s acquisition with an $850 million loan. The company said its leverage after the deal is expected to remain below 3x debt/EBITDA, or earnings before interest, taxes, depreciation and amortization. The London-based company has a market capitalization of approximately $2 billion.
Legend is a digital sports and gaming media company that owns sports betting affiliate marketing giant Covers.com, along with online betting and gambling brand Casino.org. Legend has it that by 2025 it would generate 320 million annual visits from 118 million unique visitors. More than two-thirds returned regularly, according to one statement.
The acquisition aligns with the company’s push into advertising technology as it diversifies its business beyond sports and media data streams.
Genius said the deal will give the company a “highly engaged sports and gaming audience.”
The transaction is the latest acquisition by Genius Sports. In September, the London company announced that it was acquiring fan data company Sports Innovation Lab.
Genius also announced preliminary estimates of its financial results for the fiscal year ending December 31 on Thursday. The company said it expects group revenues to rise 31% year-on-year to $669 million, while group adjusted EBITDA would rise 59% year-on-year to $136 million. In 2026, Genius expects group revenue of $810 million to $820 million, and group adjusted EBITDA of $180-$190 million.
Deutsche Bank and Goldman Sachs provided financial advice to Genius Sports. The banks have also committed to financing the deal. Macfarlanes acted as legal advisors to Genius. Oakvale Capital and The Raine Group served as financial advisors to Legend, while Latham & Watkins and Herzog Fox & Neeman acted as their attorneys on the deal.
Eben Novy-Williams contributed to this report.
(Updated with stock price at end.)
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