Endeavor puts OpenBet and IMG Arena up for sale
Company aims to shed its sports data and technology segment ahead of being taken private by Silver Lake
Endeavor is on the search for a buyer for both OpenBet and IMG Arena ahead of the company being acquired by private equity firm Silver Lake.
Following the release of the Endeavor’s Q2 2024 results yesterday, 8 August, management revealed that both OpenBet and IMG Arena are set to continue operations as normal, though both firms are considered “held for sale”, suggesting a deal is expected soon.
Endeavor’s release outlined the plans in further detail, with the soon-to-be Silver Lake-owned group revealing: “During the quarter, we began to actively market the businesses comprising the sports data and technology segment, OpenBet and IMG Arena.
“As such, for financial reporting purposes, these businesses are considered held for sale and the sports data and technology segment is presented as discontinued operations in the Q2 2024 consolidated interim financial statements.”
Endeavor first acquired OpenBet in 2022 for $800m from what was then known as Scientific Games, with the legacy sports betting supplier purchased to work in combination with sports data provider IMG Arena to bolster the group’s sportsbook offering.
Scientific Games then rebranded to Light & Wonder, focusing on land-based and online gaming.
The Scientific Games brand was spun-off and retained, with the company focusing on lottery supply.
The original deal for Endeavor to snap up OpenBet had valued the supplier at $1.2bn when it was first announced in September 2021.
However, the valuation was decreased to $800m in June 2022 following further negotiations.
The transaction involved $750m in cash, with the remainder of the fee made up by share of Endeavor’s Class A common stock.
The official integration of IMG Arena into OpenBet took place in February of this year and soon after, Endeavor conducted a strategic review of the IMG Arena business.
Two months later, the deal to go private was confirmed, with the sale to Silver Lake due to close in Q1 2025 and expected to give Endeavor an equity value of $13bn.
Endeavor’s TKO Group Holdings, which was formed last year via a merger between the UFC and WWE, is not involved in the take-private deal.
Silver lake had initially invested in Endeavor in 2012 and supported the group’s acquisition of the UFC in 2016.
Following Endeavor’s announcement regarding the expected sales, OpenBet CEO Jordan Levin made clear he was confident that the sportsbook technology supplier would continue on a successful trajectory irrespective of its ownership model.
OpenBet counts the likes of DraftKings, FanDuel, Sky Bet, Ladbrokes and William Hill as partners.
The supplier also acquired Neccton in June 2023 to bolster its compliance technology offering.
“OpenBet has consistently advanced the vision of delivering an ecosystem that reimagines safe betting entertainment for billions of sports fans,” Levin explained.
“Reflecting on our growth trajectory within the Endeavor network brings me immense satisfaction. Endeavor has been a great platform to accelerate and build on our most recent strategy, as demonstrated by the impressive growth in our global customer base over the course of the year.
“As we build on this very solid foundation, I’m very excited about what the future holds for OpenBet and confident that we will maintain our track record of innovation and excellence regardless of future changes in our ownership structure.”
Meanwhile, Endeavor posted $1.75bn in Q2 revenue, representing a 34% year-on-year (YoY) increase. There was also a net loss of $254m, including a $408.9m loss contribution in discontinued operations.