SG agrees to sell OpenBet’s sports betting business to Endeavor in a $ 1.2 billion cash and stock deal

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Scientific Games Corporation has entered into a definitive agreement to sell its sports betting business, OpenBet, to a global sports and entertainment company Endeavor Group Holdings Inc in a $ 1.2 billion cash and stock transaction.

Under the terms of the agreement, Scientific Games will receive $ 1 billion in cash and $ 200 million in Class A common stock of Endeavor. The transaction is expected to close in the second quarter of 2022, subject to applicable regulatory approvals and customary closing conditions.

OpenBet, one of the world’s leading online sports betting technology companies, has over 75 global customers, including 24 sports betting in 12 US states, and claims 100% uptime on major sporting events.

President and CEO Barry Cottle described the transaction as the culmination of a thorough process to divest OpenBet in order to maximize shareholder value and rapidly advance SG’s ambitions to become the leading cross-platform global gaming company.

“The transaction is an important milestone in optimizing our portfolio and relieving the balance sheet in order to increase our financial flexibility,” he said. “It will enable us to invest both organically and inorganically in key growth areas, particularly in content and digital markets.

“We keep our promises and implement our strategy to transform our company and unlock significant value for employees, customers and shareholders.”

Jordan Levin, CE of Scientific Games’ digital business, added, “We believe Endeavor will enable us to build on our exceptional track record of innovation and reliability, and add even more value to our customers and employees.

“The close industry relationships and global reach of Endeavor make the company the ideal partner. Together, these companies will be well positioned to capitalize on emerging trends to offer our customers even more innovative and tailored solutions as we define the future of sports betting entertainment. “

Endeavor CEO Ariel Emanuel stated, “OpenBet has developed an incredible sports betting suite that is anchored in its premier betting machine and now includes expanded content, services and products for sports books and fans.

“This service package is the ideal addition to our IMG ARENA sports betting business, which works directly with the owners of sports rights. We look forward to growing these businesses together in order to benefit from the strong long-term tailwind in the sports betting ecosystem. “

By joining the Endeavor stable, OpenBet will appear alongside some of the biggest names in sports and entertainment, including the entertainment agency WME; Sports, fashion, event and media companies IMG; and leading mixed martial arts organization UFC.


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