New Delhi, July 21 -- Chennai-based Sun TV Network Ltd has struck a deal to acquire a 100% stake in London-based cricket league franchisee Northern Superchargers Ltd for £100.5 million, or around $135 million.
Northern Superchargers competes in The Hundred, a professional league managed by the England and Wales Cricket Board, the governing body for the sport in the UK.
With the latest deal, the Maran family-controlled Sun TV Network now owns teams in three prominent cricket leagues across India, South Africa and the UK, thus marking a global footprint. The company already owns the Sunrisers Hyderabad, which takes part in the Indian Premier League, and the SunRisers Eastern Cape, which participates in South Africa's SA20 League.
This deal, however, comes at a time when the company's stock has seen a steep correction over the last one year and is now trading at Rs 574.8 per share.
Mumbai-listed Sun TV said in a stock-exchange filing Northern Superchargers clocked revenue of £1.89 million in FY24. This was slightly lower than the £1.99 million it recorded in FY23, but higher than the £1.5 million in FY22. Sun TV also said that Northern Superchargers is profitable but didn't disclose any numbers.
This acquisition, which comes at a rather steep valuation of 53 times the annual revenue, is expected to close by the end of the current calendar year.
Published by HT Digital Content Services with permission from VC Circle.