GGRAsia – US $ 1.2 billion deal sees Sci Games OpenBet go to Endeavor
US $ 1.2 billion deal lets Sci Games OpenBet go to Endeavor
Casino equipment and gaming content provider Scientific Games Corp to secure $ 1 billion in cash and $ 200 million in shares of a company acquiring control of the OpenBet sports betting platform from Scientific Games, according to a press release issued on Monday.
The acquiring company, Endeavor Group Holdings Inc, a US-listed sports and entertainment company, will offer US $ 200 million of its Class A common stock, along with the cash component, to Scientific Games.
Jordan Levin, managing director of Scientific Games Digital, was quoted in the press release as saying that Scientific Games is showing its “commitment to Endeavor through the actions component of this agreement.”
The deal “combines OpenBet’s market-leading sports betting ecosystem with unprecedented access to sports rights, content and data across Endeavor’s portfolio,” said Levin of Scientific Games .
OpenBet specializes in betting engine technology. According to the statement, it processed around three billion bets in 2020, as well as trading, pricing and risk management tools.
The transaction is expected to close in the second quarter of 2022, subject to regulatory clearances and approvals and customary closing conditions.
Ariel Emanuel, Managing Director of Endeavor, was quoted in the statement as saying, “OpenBet marks a strategic addition to our sports betting portfolio as we seek to complement our technology and product offering for sports betting operators and retailers. sports brands around the world.
California-based company Endeavor already has ties to sports betting platform IMG Arena.
“The combination of OpenBet and our IMG Arena business will allow us to expand our presence across the entire sports betting value chain and further capitalize on the huge advantage we see coming from this booming global industry. growth, ”Mr. Emanuel said.
According to the statement, IMG Arena works with more than 470 major sports betting brands around the world to provide official live data and video feeds for more than 45,000 sporting events per year.
Scientific Games’ second quarter net profit was US $ 109 million, compared to a net loss of US $ 203 million in the second quarter of 2020.
In July, Scientific Games made a proposal to acquire the 19% remaining a stake – which it does not currently own – in the digital games company SciPlay Corp.
Scientific Games had US $ 9.14 billion in face value of its long-term debt as of June 30, according to its second quarter results published in August. The group said it had paid off $ 500 million in debt since October last year.