Endeavor agrees $450m sale of IMG Arena and OpenBet
Endeavor has agreed to sell its betting subsidiary IMG Arena and sports gambling platform OpenBet to OB Global Holdings for $450m (£352.9m).
The management buyout is being backed by Endeavor CEO Ari Emanuel, with OpenBet CEO Jordan Levin also involved.
In April, Silver Lake struck an agreement that will see the US private equity firm take Endeavor private, valuing the media and entertainment company at $13bn (£10.2bn).
According to Endeavor, this move forms a ‘necessary step’ in this process, with the deal expected to be finalised in the first quarter of 2025.
The IMG Arena and OpenBet sale is subject to the approvals of applicable betting regulatory authorities, and is expected to close immediately before the finalisation of the Endeavor take-private deal.
Endeavor purchased OpenBet in 2022 for $800m (£627.4m), in a deal that positioned the sportsbook technology provider alongside IMG Arena, bolstering its sports betting operation.
The acquisition will be financed through a combination of cash and debt.
Under the agreement, Levin will continue to serve as CEO of OpenBet, which powers more than 200 betting operators globally.
Throughout the sign-to-close period, the media and entertainment giant will continue to market London-based IMG Arena for sale to a third-party buyer.
Oakvale Capital and the Raine Group both served as financial advisors to Endeavor for this deal.
“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” Levin said.
“Our group is extremely confident in OpenBet’s future considering the premium product offering, superior talent, and solid foundation we already have in place following a strong period of business growth.”
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