Hyperice lands an NFL deal because it nears a $ 1 billion valuation
Patrick Mahomes # 15 of the Kansas City Chiefs makes a pass during the game against the Baltimore Ravens at M&T Bank Stadium on September 28, 2020 in Baltimore, Maryland.
Todd Olszewski | Getty Images
Sports technology company Hyperice announced Tuesday that it had finalized its last major partnership of 2020 and signed a deal with the National Football League.
The company said the deal will help it reach a valuation of $ 1 billion by next year.
The sponsorship deal with the NFL is a multi-year pact that will make the company the league's first "Recovery Technology Partner". Hyperice, which makes equipment that helps muscles recover from injuries, will provide in-game recovery equipment to NFL teams and players and will be represented at the league's annual scouting combine in Indianapolis.
Contract terms were not specified.
In an interview with CNBC on Monday, Jim Huether, CEO of Hyperice, said that the deal will help "position us as a long-term leader in the [technology recovery] category and provide us with access to top athletes and create greater brand awareness and awareness."
"The NFL brand is a strong and important brand and we have the opportunity to use the brand in branding campaigns," he added. The television presence of players using equipment on the field of play would improve brand awareness and sales for the company.
Hyperice specializes in performance recovery products, including its massagers, which target soft tissue pain and muscle recovery for athletes. In October, the company raised $ 48 million in a Series A funding round. Huether told CNBC that Hyperice is valued at $ 700 million.
Huether called the NFL agreement "a natural direction because the NFL has a stake".
Other investors in the company include star quarterback Patrick Mahomes of the Kansas City Chiefs, the National Basketball Association and Major League Baseball. The PGA Tour and UFC have sponsorship deals with the company.
"We are delighted to have Hyperice as the official recovery technology partner in the NFL family," said Renie Anderson, chief revenue officer and executive vice president of partnerships for the NFL, in a statement. "With this partnership, Hyperice products will be available in all 32 club facilities and our players will have access to the best recovery technology so they can work at the highest level."
For the NFL, in-game recovery products include Hyperice's "Hypervolt" massager and "Venom" products. These portable devices combine thermal vibrations for the shoulders, legs and back areas.
NFL teams also have access to Hyperice's line of products, including the Normatec compression system, which helps athletes restore muscle tissue before and after games.
Hyperice will use $ 48 million in Series A funds to improve its new Bluetooth and artificial intelligence platform, the HyperSmart App.
The Hyperice sponsorship deal signed with the NBA in July provides for the addition of Hypervolt massagers under each player's seat during games.
"For us, that was what was so different about these in-game technical integration partnerships," Huether told CNBC. "I feel like we've reinvented and unlocked a new model for sports tech marketing partnerships by having a product that optimizes in-game performance. When you increase performance in a game, you become one achieve better player performance. "
Hyperice launched its new product for $ 199, the Hypervolt Go, a smaller, portable version of its Hypervolt massager that costs around $ 330.
"It's a bit more accessible and affordable for everyone," Huether said, adding that the company's October sales were the biggest month and he expects them to double in December.
He said Hyperice expects to reach a valuation of $ 1 billion "sometime in the next few months". Huether said the company would not seek another round of funding because it is profitable.
"All options are available," said Huether. "We could go public, buy more companies, or stay private and keep building our technology. It's open to us now."