Endeavor Group Holdings, Inc. has entered into a $450 million management buyout agreement with the participation of OpenBet executives, including Endeavor CEO Ariel Emanuel and CEO Jordan Levin, to sell the OpenBet and IMG ARENA businesses to “OB Global Holdings LLC.” The transaction comes as Endeavor prepares to be acquired by private equity firm Silver Lake.

Earlier this year the two businesses merged under the OpenBet banner to create a comprehensive global sports betting and data company.

“This management buyout enables us to continue to implement our vision of increased market expansion and product innovation. Our group is extremely confident about the future of OpenBet, given the premium product offering, outstanding talent and solid foundation we already have, following a period of strong business growth.” ” said Levin in a press release.

He will continue his role as CEO following the transaction.

The transaction is still subject to customary closing conditions, including regulatory approvals from relevant gaming authorities.

Silver Lake acquisition will be completed early next year

The sale comes as Endeavor prepares for its $13 billion acquisition, which is expected to be completed in the first quarter of 2025. The “held for sale” designation for OpenBet and IMG ARENA was first reported in Endeavor’s Q2 2024 results, suggesting the company was actively selling. A buyer is sought for these assets during the year.

Gümüş Lake is the first announced the acquisition In April 2024.

“This is a very special partnership. “We built Endeavor together and it has grown from $350 million in annual revenue when we first invested in 2012 to nearly $6 billion today,” said Egon Durban, co-CEO and managing partner of Silver Lake. “Endeavor can leverage its unique core platform to meet the dynamic forces driving growth in content, sports and live events with a bold vision.”

Company history

Founded in 2009, Endeavor is a global sports and entertainment company headquartered in Beverly Hills, California. The company is the majority owner of TKO Group Holdings, which is the result of the merger between UFC and WWE that was officially completed in September 2023.

Its subsidiary, OpenBet, was founded in London in 1996. Endeavor acquires OpenBet From Light & Wonder (formerly Scientific Games) in September 2022 for $800 million.

Emanuel said of the deal: “We have once again positioned ourselves on the supply side of this sector, working directly with rights holders and sports betting sites to deliver everything from official data to streaming, betting advertising and mobile applications.”

OpenBet powers responsible betting and gaming entertainment for more than 200 market-leading operators worldwide, including US customers such as FanDuel, BetMGM and PENN Entertainment. The company also has customers in Canada, the UK and Australia.

IMG ARENA was launched in 2012 and provides live broadcast and data streams for more than 65,000 sporting events annually. The company is an official partner of the UFC, PGA Tour, DP World Tour, EuroLeague, NWSL and others.

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