Scientific Games Corporation has signed an agreement to sell OpenBet, its sports betting business, to Endeavor Group Holdings in a transaction valued at $1.2bn.
According to a statement from the company, Scientific Games will receive $1bn in cash and $200m in Endeavor Class A common stock. The transaction is scheduled to close in Q2 2022, after regulatory approval.
OpenBet is a global online sports betting company that focuses on sports content and technology, and offers services to operators all over the world. The group has over 75 global customers, including 24 sportsbooks across 12 states, and is a preferred business-to-business sports betting partner in the majority of regions.
"This transaction represents the culmination of a thorough process to divest OpenBet in order to maximise value for our shareholders and rapidly advance our vision to become the leading cross-platform global game company," said Barry Cottle, President and CEO of Scientific Games. "The transaction is a significant milestone towards optimising our portfolio and de-levering the balance sheet to enhance our financial flexibility.
"OpenBet has built an incredible sports betting suite anchored in its best-in-class betting engine and now includes expanded content, services and products for sportsbooks and fans," said Ariel Emanuel, CEO of Endeavor. "This capability set is the ideal complement to our IMG ARENA sports betting business, which works directly with sports rights holders. We look forward to growing these businesses together to capitalise on the strong secular tailwinds in the sports betting ecosystem."