Genius Sports Limited (NYSE:GENI) on Thursday announced an agreement to acquire Legend in a transaction valued at up to $1.2 billion.

The deal includes $900 million payable at closing, $800 million in cash and $100 million in stock, along with a potential earnout of up to $300 million tied to profitability and cash flow targets.

The deal is expected to be funded with an $850 million Term Loan B, leaving the revolving credit facility undrawn.

The acquisition is slated to close in the second quarter of 2026, subject to customary conditions.

Legend Business & Synergies

Legend is a digital sports and gaming media network that monetizes sports audiences via its large-scale media network and advanced marketing technology, while distributing content through major outlets like Sports Illustrated and Yahoo Sports.

In 2025, Legend attracted 320 million annual visits from 118 million unique users, with over two-thirds returning regularly.

The acquisition is expected to integrate this highly engaged sports and gaming audience into Genius Sports’ media ecosystem, providing a reliable revenue stream.

Using FANHub, the world’s first sports fan activation platform, Genius Sports is projected to link this global audience and marketing technology with its network of more than 2,000 sports, media, and betting partners through a single, integrated platform.

Moreover, the acquisition is expected to be immediately accretive to adjusted EBITDA margins and free cash flow conversion, while supporting a revenue CAGR of at least 20% through 2028.

On a pro forma basis, the combined company is projected to achieve roughly $1.1 billion in revenue, $320–330 million in Adjusted EBITDA, and around 50% free cash flow conversion for 2026.

Mark Locke, CEO of Genius Sports, said, “The acquisition of Legend will drive higher margins and stronger free cash flow, positioning Genius Sports to immediately transform the market and grow the size and scale of our business.”

Preliminary Results & Guidance

For 2025, Genius Sports expects revenue of $669 million (versus consensus of $656.08 million), up 31%, and adjusted EBITDA of $136 million, up 59%.

The company projects an adjusted EBITDA margin of 20% for the year. Cash and cash equivalents stood at $281 million at the end of the year.

For 2026, Genius Sports expects revenue of around $810–$820 million and adjusted EBITDA of $180–190 million on a standalone basis.

Apart from this, the acquisition and integration of Legend is expected to elevate Genius Sports’ performance outlook for 2028, driven by the expanded scale of its media and advertising platform and faster monetization of its global inventory.

The company projects revenue of $1.6 billion, representing a ~21% CAGR from 2026 to 2028, with an adjusted EBITDA margin of around 35% and Free Cash Flow conversion of at least 60%.

GENI Price Action: Genius Sports shares were down 0.70% at $8.48 during premarket trading on Thursday, according to Benzinga Pro data.

Image via Shutterstock