Sports and entertainment company Endeavor (EDR) - Get ENDEAVOR GROUP HOLDINGS, INC. Report on Monday said it has agreed to acquire sports betting engine technology provider OpenBet from Scientific Games (SGMS) - Get Scientific Games Corporation Report for $1.2 billion in cash and stock.
The addition of OpenBet complements Endeavor's existing position in the sports betting industry with its affiliate IMG Arena, which works with over 470 sportsbook brands worldwide to deliver official live streaming video and data feeds for more than 45,000 sports events annually, according to an Endeavor statement.
The combination of the two sports betting businesses creates an end-to-end solution, delivering official data and video streams, premium content, cutting edge mobile products and best-in-class betting technology to leagues, federations and sportsbooks worldwide, the statement said.
Under the agreement, Endeavor will pay $1 billion in cash and $200 million in its Class A common stock for OpenBet. The deal is expected to close in the second quarter of 2022, subject to regulatory consents and approvals, and customary closing conditions.
"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," Endeavor CEO Ariel Emanuel said in a statement. "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," Jordan Levin, chief executive of Scientific Games’ Digital business, said in a statement. "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.
OpenBet focuses exclusively on licensed customers and regulated global gambling markets serving customers that include sportsbooks such as DraftKings, FanDuel, WynnBet, SkyBet, Ladbrokes and William Hill.
OpenBet provides betting engine technology, having processed approximately 3 billion bets in 2020, as well as trading, pricing and risk management tools; player account and wallet solutions; innovative front-end UX and UI; and content offerings such as BetBuilder, DonBest pricing feeds and an industry-first sports content aggregation platform.
IMG Arena works with leading sportsbook brands, leagues and federations worldwide, providing always-on services, including live streaming and on-demand virtual sports products.
Shares of Endeavor on Monday rose 10.4% to $30.15 in after hours trade. Scientific Games stock rose 5.7% to $87.65 after hours.