The supplier entered into a definitive agreement to sell its sports betting business to Endeavor in a cash and stock transaction which will see Scientific Games receive $1bn in cash and $200m in Endeavor Class A common stock. The acquisition is expected to be completed in Q2 2022, providing regulatory approvals are met.
The sports and entertainment company Endeavor said the purchase will boost its position within the sports betting ecosystem, to complement its IMG Arena subsidiary which works with nearly 500 sportsbooks worldwide to deliver official live streaming videos and data feeds. According to the company, the combination of OpenBet and IMG Arena will "create a unique end-to-end solution" delivering official data and video streams, content and technology solutions to leagues, federations and sportsbooks globally.
Endeavor CEO Ariel Emanuel 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 capitalise on the tremendous upside we see coming from this fast-growing global industry."
Scientific Games President and CEO Barry Cottle added: "This transaction represents the culmination of a thorough process to divest OpenBet in order to maximise value for our shareholders and rapidly advance our vision to become the leading cross-platform global game company."
"It will position us to invest both organically and inorganically in key growth areas, particularly in content and digital markets."
OpenBet, which was purchased by Scientific Games in 2017, is a sportsbook and gaming software supplier which offers its services to major operators worldwide in the likes of the US, UK, Australia, Canada, Europe and the Asia-Pacific.
The Raine Group acted as Endeavor’s financial advisor for the transaction, with Oakvale Capital and Macquarie Capital providing financial advice to Scientific Games.
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