The combination of OpenBet and IMG ARENA will enable Endeavor to grow its presence across the entire sports betting value chain
Scientific Games to sell OpenBet to Endeavor Group. (Credit: Tumisu from Pixabay)
Endeavor Group has agreed to acquire OpenBet, a UK-based online sports betting company, from Scientific Games for $1.2bn in a cash-cum-stock deal.
The US-based sports and entertainment company will pay $1bn in cash and the remaining $200m through its shares.
OpenBet is said to exclusively focus on regulated global gaming markets and licensed customers. The company serves sportsbooks that include DraftKings, FanDuel, Ladbrokes, WynnBet, SkyBet, and William Hill.
Claimed to specialise in betting engine technology, the company had processed nearly three billion bets last year.
OpenBet also offers player account and wallet solutions, trading, pricing, and risk management tools, and front-end user experience (UX) and user interface (UI).
The company also has content offerings that include BetBuilder and DonBest pricing feeds in addition to a sports content aggregation platform.
OpenBet has a workforce of over 1,000 people working in different parts of the world.
Endeavor said that the acquisition will complement its position within the sports betting ecosystem, which is anchored currently by its sports betting arm IMG ARENA.
Working with over 470 sportsbook brands around the world, IMG ARENA provides official live streaming video and data feeds for over 45,000 sports events annually.
According to Endeavor, the combination of OpenBet and IMG ARENA will result in creating a unique end-to-end solution for providing official data and video streams.
Besides, the solution will offer premium content, mobile products, and betting technology solutions to leagues, sportsbooks, and federations around the world.
Endeavor CEO Ariel Emanuel said: “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.
“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 capitalise on the tremendous upside we see coming from this fast-growing global industry.”
Scientific Games president and CEO Barry Cottle said that the deal marks the end of a process to sell the online sports betting business with an objective to maximise value for its shareholders. The deal will also help the company further its vision to become a top cross-platform global game company.
Cottle added: “The transaction is a significant milestone towards optimising our portfolio and de-levering the balance sheet to enhance our financial flexibility. It will position us to invest both organically and inorganically in key growth areas, particularly in content and digital markets.”
The deal, which is subject to regulatory approvals and customary closing conditions, is anticipated to close in Q2 2022.