Yahoo Finance Endeavor Buying OpenBet Sports Betting Platform From Scientific Games For $1.2B In Cash And Stock; Shares Pop
Endeavor said Monday it’s struck a deal to acquire OpenBet — a content, platform and service provider to the sports betting industry — from Scientic Games Corp. for $1.2 billion in cash and stock.
It said the purchase will complement its position within the sports betting ecosystem, currently anchored by IMG Arena, which works with more than 470 leading sportsbook brands worldwide to deliver social live streaming video and data feeds for more than 45,000 sports events annually.
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The shares shot up nearly 8% in after-hours trading.
Endeavor CFO Jason Lublin the sale price breaks down to $1 billion in cash and the rest in Endeavor shares, which became an option for the company after it went public in April. The cash includes some on hand and some borrowed but the company will maintain its current debt targets. OpenBet and IMG Arena together will form a new, fourth reporting line that will have $340 million in revenue next year plus anticipated synergies of $100 million.
“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,” said Ariel Emanuel, Endeavor CEO, who acknowledged recently the company is on the prowl for “thoughtful” acquisitions. He called this one “transformational.”
“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,” he said.
The transaction is expected to close in the second quarter of 2022, subject to regulatory consents and approvals, and customary closing conditions.
The Raine Group acted as exclusive financial advisor to Endeavor on the transaction. Latham & Watkins LLP acted as legal advisor.
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