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ESPN Leads $80 Million Investment In The Active Network; Will Pursue Acquisitions

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imageThe Active Network, the big provider of sports-related technology, has just closed a huge, $80 million sixth round led by ESPN. Past backers participating in the round include Canaan Partners, North Bridge Venture Partners and Performance Equity Partners. The company, which has now raised $275 million since 1999, will use the funding towards infrastructure and towards “appropriate acquisitions.” Acquisitions are a key part of its strategy: Since 2007, it has acquired 11 companies, including Hy-Tek Sports Software, LaxPower, and Cool Running. Its flagship site is Active.com a sports training and registration portal. In addition to the online communities it runs, The Active Network provides marketing services and other technologies geared towards sports management. It’s also worth noting that it’s not just a sports company, as it offers services towards organizations like schools, campgrounds and governments.

SEE ALSO: The Active Network Acquires Hy-Tek Sports Software

There’s no word on how profitable the company is, though it says it had revenue of $107 million in 2007. For ESPN (NYSE: DIS) it’s the latest in a string of deals, including a number of acquisitions of smaller sports properties.

Rafat adds: The company filed for a $46 million IPO in 2004, but pulled it back due to what it called “unfavorable market conditions.” Maybe this is finally the mezzanine round…though on second thoughts, ESPN would not necessarily invest in such late stage if the company was close to filing IPO anytime in the next year.

Aug 27, 2008 12:17 PM ET

Posted In: Money, M&A & Venture Capital, Mergers & Acquisitions, Venture Capital, Companies, Disney, ESPN, active network, canaan partners, north bridge venture partners, performance equity partners

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