Dick's Sporting Goods Sells Off Two Tech Companies for $45 Million
Dick’s Sporting Goods has sold two of its technology subsidiaries, Blue Sombrero and Affinity Sports, to Stack Sports, a global provider of sports technology, for $45 million.
When asked about the reasoning behind the sale on Dick’s recent earnings call, president Lauren Hobart responded, “frankly, we realized over the last few years that we did not have to own and operate those businesses specifically to be able to extract the value from them.”
As part of the sale, Dick’s has entered into a long-term strategic partnership in which it will serve as the official retailer of Stack Sports.
“We’re going to integrate Blue Sombrero and Affinity into their platform, as well as back into [Lowe’s] GameChanger platform. So, the ecosystem actually just gets bigger as a result of doing this and there is a long-term partnership on data sharing as well. So, we view this as a real win-win.”
As part of the transaction, Dick’s is now the official sporting goods retail partner of Stack Sports, and Stack Sports is now the official club and league technology partner of Dick’s. The two organizations will also collaborate on mobile team management and live scorekeeping via the Dick’s Team Manager and GameChanger technologies.
Combining Stack Sports with Affinity Sports and Blue Sombrero under one organization strengthens Stack Sports' position in the sports software industry, creating a comprehensive suite of cloud-based sports administration, registration, communication and payment management solutions.
Affinity Sports, which Dick’s had acquired in 2016, provides specialized software management technology to various youth sports National Governing Bodies and large-scale organizations. Blue Sombrero is a provider of websites, registration, and league management tools for youth sports organizations.
The sale will allow Stack Sports to focus on technology solutions for youth sports leagues and their affiliates, while DICK'S Sporting Goods can focus its efforts on continuing to serve youth athletes with equipment and apparel. The combination of the technology solutions will now serve more than 25,000 sports organizations, providing best-in-class technology with the continued mission of expanding sports participation, simplifying administration and developing athletes.
"Youth sports is a huge business, and it will just keep getting bigger during the next few decades," said Stack Sports CEO Alex Alt. "We are happy to be the company to lead this industry and to provide useful tools for administrators, coaches, parents, tournament coordinators and team managers. We are also excited to be able to enter into a dynamic retail partnership with industry leader -- DICK'S Sporting Goods - providing even more value for our customers."
"Today marks an exciting new chapter in the Blue Sombrero and Affinity stories as we join the world's leading youth sports technology provider," said Tom Arnett, CEO, Blue Sombrero and Affinity Sports. "As part of the Stack Sports team, we look forward to having the opportunity to bring new innovations and additional product offerings to the industry and our existing customers. The coming together of our teams makes sense because we both have the same mission and vision - to support youth sports, provide the industry with unwavering customer support, and develop great technologies. The fact that we will get to continue on this journey while still working side-by-side with DICK'S Sporting Goods makes it even more exciting."