Infront Sports & Media — a sports marketing company that specializes in distribution of media rights, sponsorship, media production and event operation — has acquried a 51-percent stake in Omnigon — a company that specializes in providing digital and technology consulting for the sports and entertainment world — only four months after the companies had entered into a strategic partnership.
As we discussed with the announcement of the partnership, the acquisition should help both companies grow their prospective businesses. Media companies, leagues, and teams don’t want to deal with multiple vendors and consultants because of complications and miscommunication. The more services a company or partnership can offer the better it is for industry stakeholders.
This majority-stake purchase now officially combines the powers of both Infront and Omnigon. Infront can immediately offer Omnigon’s services as a solution to one of its 170 rights-holders and hundreds of sponsors and media companies it services now. Both companies will still operate as currently constituted — Omnigon will retain its current brand identity and continue to operate as a stand-alone entity — but the acquisition allows for stronger strategy alignment and an easier option for both companies’ clients.
Omnigon has been extremely successful in its current position building digital solutions for World Rugby, PGA Tour, NASCAR, AS Roma, Miami Heat, and WWE. Its real time analytics package called Corebine and white label bracket solution, BracketPro have been leveraged successfully by players in the sports and entertainment industry such as Major League Soccer, Under Armour, FOX, and CONCACAF. There is a reason Infront is acquiring 51-percent of the company in such a short time frame after partnering. Most of that has to do with combining the strengths of both companies and increasing their offerings.
Much like any acquisition there will be some changes in how both companies operate. Over the next coming months, they will be able to share institutional knowledge, exchange client lists, and look where they can grow each prospective arm of the business. As we said before, the sports world is entering a more digital and tech-based business cycle, and it would not be a surprise to see other firms work together as these companies are now doing. Infront and Omnigon just have a head start.
Michael Colangelo is Managing Editor of The Fields of Green and Assistant Director at the USC Sports Business Institute.