Endeavor to Buy Sports Betting Platform OpenBet for $1.2 Billion
Endeavor has reached a deal to acquire OpenBet, a sports betting platform from Scientific Games, for $1.2 billion.
The deal is made up of $1 billion in cash and $200,000 in stock.
OpenBet is a content, platform and service provider to the sports betting industry. Endeavor says it will pair OpenBet with its IMG Arena, which works with more than 470 leading sportsbook brands worldwide to deliver official live streaming video and data feeds for more than 45,000 sports events annually.
“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,” remarked Ariel Emanuel, CEO, Endeavor. “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.”
“This transformational announcement combines OpenBet’s market-leading sports betting ecosystem with unparalleled access to sports rights, content and data across the Endeavor portfolio,” said Jordan Levin, Chief Executive of Scientific Games’ Digital business. “Together, we are uniquely positioned to define the future of sports betting entertainment. Putting our customers and their players at the heart of our product and technology innovation will remain the key to our ongoing success. The team at OpenBet is second to none and we’re laser focused on the rapid expansion of the global sports betting market. Ari’s leadership and vision for the entertainment industry is exceptional and this is supported by Scientific Games’ commitment to Endeavor through the stock component of this deal.”
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 to Endeavor.