Endeavor negotiates 33% discount for OpenBet acquisition from Light & Wonder
Purchase agreement of $1.2bn agreed in September 2021 with Light & Wonder has been amended to $800m to reflect market conditions
Endeavor has secured a $400m reduction in its purchase price agreement with Light & Wonder for its sports betting division OpenBet.
The original cash and stock deal of $1.2bn was announced in September 2021, but has now been reduced by 33% to an $800m deal.
The original deal would have seen Endeavor hand over $1bn in cash and $200m in Class A common stock based on the volume-weighted average price in the 20 days leading up to 24 September 2021.
However, the new deal is comprised of $750m in cash and more than 2.3 million shares worth $50m based on the same volume-weighted average price over 20 days ending 29 June.
Light & Wonder noted the new purchase agreement provided a “strong valuation in the current market” despite missing out on almost half a billion dollars.
The deal is set to be completed under the revised terms by the end of Q3 2022, subject to regulatory approvals and closing conditions.
Barry Cottle, president and CEO of Light & Wonder, said: “This transaction is the final step in our journey to streamline our organisation as we deliver on our promises as the leading cross-platform global game company.
“The cumulative proceeds from our divestitures, as well as our double-digit growth profile and $1.4bn 2025 targeted consolidated AEBITDA resulting in strong cashflow generation, is expected to create tremendous value for our shareholders.”