DICK’S Sporting Goods Sells Blue Sombrero and Affinity Sports Subsidiaries
Today’s announcement represents a unique, industry-shaping opportunity and creates the leading cloud-based provider of websites, registration, payments and league management tools for youth sports organizations with over $1 billion of payments managed.
On August 22, 2019, Dick’s Sporting Goods completed the sale of two of its technology subsidiaries, Blue Sombrero and Affinity Sports, to Stack Sports for $45 million.
Stack Sports, is the largest and fastest-growing global provider of sports technology, and has acquired more companies in the sports technology space than anyone else.
In connection with the transaction, the companies have entered into a long-term strategic partnership for retail promotion, live event scoring and team management technologies.
Combining Stack Sports with Affinity Sports and Blue Sombrero under one organization strengthens Stack Sports’ position in the sports software industry, creating the largest customer-base in the sports tech market and the industry’s most comprehensive suite of cloud-based sports administration, registration, communication and payment management solutions.
Stack Sports will now serve tens of millions more youth families with our acquisition of @Blue_Sombrero & @AffinitySports_ We are ready to lead the youth sports technology movement https://t.co/56aEGqEp7b #SAAS #cloud #youthsports— Stack Sports (@StackSports) August 22, 2019
Affinity Sports provides specialized software management technology to various youth sports National Governing Bodies and large-scale organizations. Blue Sombrero, which Dick’s acquired before Affinity, is a registration, and league management tools for youth sports organizations that also provides turn-key websites for its customers. Both software platforms have an impressive list of national, regional and local organizations and governing bodies in baseball, soccer, football and more.
Genstar Capital, Stack’s majority shareholder, supported this transaction with a significant new investment to fuel the growth and innovation of the combined businesses.
“The acquisition of Affinity Sports and Blue Sombrero accelerates our path of transforming the sports experience for all.”Alex Alt, Chief Executive Officer, Stack Sports
“By combining the assets of these two youth sports technology companies with our existing cloud-based technology assets, we’ve created an industry leader with the most comprehensive software suite for sports organizations worldwide,” said Alex Alt, chief executive officer, Stack Sports.
“We now have the largest customer base in the industry that will rely on us to help them run, manage and organize their teams and organizations,”Alex Alt, Chief Executive Officer, Stack Sports
“This is very exciting for us and for the entire industry. We welcome the Affinity Sports and Blue Sombrero team members to Stack as they will be instrumental in servicing customers and creating a strong future together.”
“Stack Sports acquisition of Affinity Sports and Blue Sombrero has a positive impact on what we are looking to accomplish at U.S. Soccer,” said Pablo Garcia, Director of Special Projects at the United States Soccer Federation.
“Bringing together some of the best technology offerings in the industry reduces friction within the soccer ecosystem by simplifying participation pathways for our members and accelerates our efforts to unlock the underlying data within the game,” said Garcia. “We look forward to working in close collaboration with the newly combined organizations as they help us accomplish our mission to become the preeminent sport in the United States.”
This acquisition will also 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 unprecedented scale and best-in-class technology with the continued mission of expanding sports participation, simplifying administration and developing athletes.
DICK’S Sporting Goods, Inc. (NYSE: DKS), the largest U.S. based full-line omni-channel sporting goods retailer, announces this sale today as it reported sales and earnings results for the second quarter ended August 3, 2019.
Net sales for the second quarter of 2019 increased 3.8% to approximately $2.26 billion.
Dicks’s reported consolidated net income for the second quarter ended August 3, 2019 of $112.5 million, or $1.26per diluted share.
“We are very pleased with our second quarter results, as we delivered a 3.2% comp sales increase and earnings per diluted share above last year. Our strong comp sales performance was driven by increases in both average ticket and transactions and represented our strongest quarterly comp since 2016,” said Edward W. Stack, Chairman and Chief Executive Officer who also reported that their eCommerce channel remained strong, increasing 21%.
Stack Sports has three key pillars — Play, Improve, and Engage — and this new move changes not only the landscape of the technology options in youth soccer but demonstrates a longterm plan to engage the market in a far wider and deeper way than ever done before.
As part of the transaction, DICK’S Sporting Goods and Stack Sports have also entered into a strategic partnership agreement. DICK’S Sporting Goods 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 Sporting Goods. The two organizations will also collaborate on mobile team management and live scorekeeping via the DICK’S Team Manager and GameChanger technologies.
“Our key strategies and investments are working, our major headwinds are behind us and we’ve bent the curve on sales. We are very enthusiastic about our business and are pleased to increase our full year sales and earnings outlook,” said Dick’s CEO Stack (who is not related to Stack Sports.)
“Youth sports is a huge business, and it will just keep getting bigger during the next few decades,”Alex Alt, Chief Executive Officer, Stack Sports
“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,” said Alt.”
“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, chief executive officer, 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.”
Did you know that Stack Sports has nearly 50 million users in 35 countries. Some of the largest and most prominent sports organizations including U.S. Soccer Federation, the Amateur Athletic Union (AAU) and USA Football rely on Stack Sports technology to run and manage their organizations.