Light & Wonder has entered into an amended agreement with Endeavor to sell its OpenBet brand.
The supplier, formally called Scientific Games, has struck a deal with Endeavor Operating Company and its sports and entertainment sister company, Endeavor Group Holdings.
Per the sale agreement, Light & Wonder will receive $750m in cash and $50m in Endeavor Group’s common stock.
Light & Wonder believes its new sale agreement represents a strong valuation in the current market, while “increasing the speed and certainty of closing" the deal.
Amended terms of sale include Endeavor's agreement to waive a condition requiring Nevada's Gaming Control Board to provide regulatory approval for the sale. The deal is expected to close by the end of Q3 2022.
Alongside this agreement, the recently completed sale of Light & Wonder’s lottery product will generate $5.6bn of estimated net after-tax proceeds.
“Endeavor is the right partner for OpenBet and the amended agreement increases speed and certainty by creating a simplified path to closing the transaction while unlocking substantial benefits for OpenBet and Light & Wonder,” said Barry Cottle, Light & Wonder President and CEO.
He continued: “OpenBet demonstrates continued momentum across its key markets and the amended terms of the transaction provide strong value for the business.
“The cumulative proceeds from our divestitures, as well as our double-digit growth profile and $1.4bn 2025 Targeted Consolidated AEBITDA resulting in strong cash flow generation, is expected to create tremendous value for our shareholders.”
In OpenBet, Endeavor is purchasing a company present in over 75 global markets, including 46 sportsbooks across 12 US states.