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West Australian cyber security entrepreneur Mark Arena, founder of US-based businesses Intel 471, has acquired a majority stake in his childhood favourite basketball team the Perth Wildcats for $21 million.
The entrepreneur's MT Arena Capital Investment (MTACI) has completed the purchase of 52.5 per cent of the Wildcats as part of a staged transaction with ASX-listed Sports Entertainment Group (ASX: SEG).
The acquisition follows a binding agreement reached last month that will see MTACI take up a 90 per cent interest in the club, one of the most successful in the National Basketball League's (NBL) history, at a $40 million enterprise valuation.
SEG is the largest syndicator of sports radio content across Australia and also produces TV shows and podcasts, but also has the SEN Teams business that includes the Wildcats, Bendigo Spirit, Melbourne Mavericks, Otago Nuggets and Southern Hoiho.
Sports Entertainment Group, which has a market capitalisation of $81.7 million, will continue to be a minority shareholder after today's transaction. Arena has a put and call option to acquire a further 37.5 per cent for $15 million by no later than 30 June 2026.
Arena, a former Australian Federal Police (AFP) technical specialist, set up Intel 471 in 2014 as a startup specialising in actionable threat intelligence, focused on infiltrating and maintaining access to closed sources where threat actors collaborate, communicate and plan cyberattacks.
With its services used by intelligence services, the military, law enforcement and private companies, Intel 471 received a strategic investment from private equity firm Thoma Bravo in 2021, and two years later Arena moved into an advisory role.
He has since moved back to Perth, where he plans to bring a "WA-first" mentality to the Wildcats, which were last champions of the NBL in 2019 and won the Grand Final five times in that decade, out of a total of 10 championships since the club was founded in 1982.
Arena takes inspiration from long-time and highly-respected former owner Jack Bendat, who turned the club into a powerhouse of the competition.
“I’ve absolutely loved this team for as long as I can remember and I’m super excited to get started,” Arena says.
“I see huge potential for both basketball and for the city of Perth with the return of local ownership, and I feel strongly that we’ll be a club that will be ‘Western Australia first’ in our intent.”
Arena wants to use his business acumen and technical skill set to create greater fan experiences, cement the team’s role as a dominant force within Australian basketball and showcase both the team and the city of Perth on a global stage.
“I want to build upon the legacy of the strong management this club has enjoyed - but add my own expertise to strengthen the Wildcats' commercial potential and community connection,” Arena says.
“Jack Bendat and those who came before and after him cemented the Wildcats as a loved team within the WA community."
He adds that SEG CEO Craig Hutchison brought the influence of a media empire to broaden the reach of the team.
"I want to maintain both those elements but capitalise on my own technology and innovation skills to create a richer engagement between this team and its members, sponsors, the city of Perth, and the basketball community both here and internationally," Arena says.
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