Endeavor Group in $13bn deal to go private, acquired by Silver Lake

With the potential total value reaching as high as $25bn, this acquisition will be one for the history books.

Endeavor Group

Endeavor Group has entered into a definitive agreement to be acquired by Silver Lake.

Silver Lake, a technology investment firm, will acquire 100% of the outstanding shares it does not already own.

Stockholders will receive $27.50 per share, which is a 55% premium of the $17.72 price from 25 October 2023, the day prior to Endeavor announcing its strategic review.

This values the acquisition at $13bn, although Silver Lake has stated that this could rise as high as $25bn when the total consolidated enterprise value is accounted for.

If so, Silver Lake claims this would make it the ‘largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector.’

Of course, this deal comes only two months after Endeavor announced it would integrate two of its own brands, OpenBet and IMG Arena.

Silver Lake currently has over $102bn in combined assets from across North America, Europe and Asia, with its portfolio generating over $250bn in annual revenue.

Ariel Emanuel, Endeavor CEO, said: "Since 2012, Endeavor’s strategic partnership with Silver Lake and Egon Durban have been central to our evolution into the global sports and entertainment leader we are today.

“We believe this transaction will maximise value for all of Endeavor’s public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company.”

The $25bn valuation takes into account the value from TKO, the Endeavor media conglomerate that was created through the merger of UFC and WWE.

TKO will be considered separate from the acquisition by Silver Lake and will stay a publicly traded company, although it will still work with Endeavor.

Stephen Evans, Silver Lake Managing Director and Endeavor Director, said: “The team at Silver Lake is proud of our longstanding partnership with Endeavor, marked by more than $3.5bn of direct investment across six distinct transactions over 12 years.”

The Special Committee of Endeavor’s Independent Directors unanimously recommended the acquisition in a recent meeting.

Egon Durban, Silver Lake Co-CEO and Managing Partner, and Chairman of the Board of Endeavor, said: “Our unwavering belief in Ari and Patrick, together with Mark and other talented leaders at Endeavor, has never been stronger.

“Together, we have built and grown Endeavor from $350m in annual revenue when we first invested in 2012 to nearly $6bn in consolidated revenue today.

“Consistent with our mission and underscored by this commitment being among the largest in Silver Lake’s history, we are all in on working with the Endeavor team and our trusted anchor investors to create value by accelerating growth at scale.”

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