Endeavor has agreed to sell its sports betting assets OpenBet and IMG Arena to OB Global Holdings LLC in a management buyout, the company announced on Monday.
OB Global Holdings will acquire the businesses for approximately $450 million, subject to certain adjustments. The transaction will be financed through a mix of cash and debt.
Endeavor had acquired OpenBet from Light & Wonder in September 2022 for $800 million.
The buyout is backed by Endeavor CEO Ariel Emanuel and OpenBet executives including its CEO Jordan Levin, said an Endeavor release. OpenBet will continue to operate as normal with Levin leading the business as CEO.
“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” Levin said. “Our group is extremely confident in OpenBet’s future considering the premium product offering, superior talent, and solid foundation we already have in place following a strong period of business growth.”
OpenBet takes strides in 2024
OpenBet powers responsible betting and gaming entertainment for more than 200 operators around the globe after a strong first half of 2024 saw its global customer base increase by more than 40% year-on-year. It also launched a regulatory technology vertical following the acquisition of Neccton and launched a geolocation technology service OpenBet Locator.
Endeavor formally merged OpenBet and IMG Arena under a single banner under the OpenBet name earlier this year.
In an August earnings call, Endeavor revealed it had begun the formal process to sell OpenBet and IMG Arena to prospective buyers. On Monday, as part of the buyout announcement, the company confirmed it will continue to market IMG Arena for sale to a third-party purchaser before and after closing.
‘A necessary step’ for Silver Lake private deal
A statement from OpenBet provided to SBC Americas noted that the transaction is a necessary step for the closing of the proposed sale of Endeavor to private equity firm Silver Lake.
That $13-billion Silver Lake deal was first announced in April. Last month, as part of that deal, Endeavor agreed to sell its On Location and Professional Bull Riders business and IMG’s sports marketing arm to TKO Group, the holding company of WWE and UFC, in an all-stock transaction valued at $3.25 billion.
Silver Lake is the biggest investor in Endeavor, holding around 31% of outstanding shares as of the end of 2023. If all remains on track, the take-private deal is expected to close by the end of the first quarter of 2025.
