Endeavor finalizes the acquisition of betting operator OpenBet

Sports betting and entertainment company Endeavor Group Holdings, announced last week Friday that it completed the acquisition of OpenBet, the leading content platform and service provider for the iGaming industry. It has taken slightly more than one year for the acquisition to be completed, considering that the sports betting and entertainment company announced its plans to acquire OpenBet back in September 2021.

To complete the acquisition, Endeavor agreed to pay $800 million to Light and Wonder. From that total, Endeavor $750 million were settled in cash while the remaining $50 million was payable in Class A common stock shares of the company.

In light of the completed acquisition, OpenBet is expected to join forces with IMG ARENA and create Endeavor's fourth operating segment combining sports data and technology. The new segment is expected to be created early next year.

According to a statement released by Endeavor, Raine Group was an exclusive financial advisor of the company for the acquisition. On the other hand, the company used the services of Latham & Watkins LLP as its legal advisor for the deal.

Upon completing the takeover, the price tag is lower than initially announced. Last year, the price tag expected for the acquisition was $1.2 billion, payable through a combination of $1 billion in cash as well as $200 million in Endeavor's Class A common stock.

Jordan Levin, OpenBet's CEO, commented in a statement released on September 30, 2022. He said: "We've been awaiting this day when we can bring together everything OpenBet has to offer with the depth of expertise and relationships that Endeavor and IMG bring to the table."

Levin pointed out that offering innovative solutions and unique experiences for sports fans remains a key priority for OpenBet. Last but not least, he outlined that the company is excited to join forces with Endeavor's team of dedicated professionals.

Currently, OpenBet has more than 1,000 team members in different locations around the globe. A prime focus for the company is joining forces with licensed operators and introducing its leading services to regulated gaming markets. The company's portfolio of partners includes major industry operators such as FanDuel, DraftKings and Ladbrokes, to name a few.

Ariel Emanuel, Endeavor's CEO, added: "The addition of OpenBet to our sports betting portfolio will enable us to further capitalize on the massive tailwinds in the fast-evolving sports betting ecosystem and lead the way in defining the future of sports betting entertainment."

Last but not least, he pointed out: "In combination with our IMG ARENA sports data and content business, we'll look to create and unlock meaningful value for our rights holder and sportsbook customers, helping deliver the most compelling offerings for sports fans globally."

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