Deal: Endeavor Buys Sports Gambling Firm OpenBet For $1.2B
Endeavor Group Holdings (NYSE: EDR), a media and sports conglomerate that owns the Ultimate Fighting Championship (UFC) league, is making a new big acquisition. It’s agreed to buy OpenBet, a British company that makes software for sports gambling operators.
- Endeavor will pay $1.2bn to buy OpenBet, split into $1bn in cash and $200mn of stock. It’s buying OpenBet from Scientific Games Corporation, a publicly-traded gambling company that bought it in 2017 as part of its $630mn acquisition of NYX Gaming.
- Divesting an asset bought as part of a $630mn deal in 2017 for $1.2bn four years later represents a very good return on investment for Scientific Games.
- OpenBet’s software tools are used by sportsbook operators to facilitate trading, pricing, risk management, and other processes needed to enable gambling. Its major customers include the likes of DraftKings, FanDuel, Ladbrokes, and William Hill.
- Endeavor is a conglomerate with a plethora of entertainment and sports businesses. Its main divisions include the UFC mixed martial arts league, Hollywood talent agency WME, and sports events giant IMG.
- Endeavor went public this April with an IPO that raised over $500mn. It made $3.5bn in revenue in 2020.