Endeavor Group Holdings Inc. has announced that it has agreed terms on a deal that will see the group acquire sports betting company OpenBet from Scientific Games for $1 billion in cash and $200 million in Endeavor’s Class A common stock.
Endeavor currently operates IMG Arena, a solution that assists 470 worldwide sportsbooks with live streaming video and data feeds for multiple live sporting events. The company’s rights holder clients include the PGA TOUR, Ryder Cup, UFC, ATP, USTA, Wimbledon, MLS and The Football Association.
Meanwhile OpenBet’s betting engine technology is used by leading sports betting operators such as William Hill, DraftKings, FanDuel, WynnBet, SkyBet, and Ladbrokes among others.
Speaking in a press release, Ariel Emanuel, CEO of Endeavor said:
“OpenBet marks a strategic addition to our sports betting portfolio as we look to round out our technology and product offering for sportsbook operators and sports brands worldwide. The combination of OpenBet and our IMG ARENA business will enable us to expand our footprint across the entire sports betting value chain and further capitalize on the tremendous upside we see coming from this fast-growing global industry.”
Jordan Levin, Chief Executive of Scientific Games’ Digital business went on to add:
“This transformational announcement combines OpenBet’s market-leading sports betting ecosystem with unparalleled access to sports rights, content and data across the Endeavor portfolio. Together, we are uniquely positioned to define the future of sports betting entertainment. Putting our customers and their players at the heart of our product and technology innovation will remain the key to our ongoing success. The team at OpenBet is second to none and we’re laser focused on the rapid expansion of the global sports betting market. Ari’s leadership and vision for the entertainment industry is exceptional and this is supported by Scientific Games’ commitment to Endeavor through the stock component of this deal.”
The deal is expected to be finalized in the second quarter of 2022.
Since the deal was announced, shares of Endeavor rose by as much as 7.9% to $29.48 while Scientific Games shares rose by 2.1% and closed at $82.95.
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