The owner of the Ultimate Fighting Championship has completed a deal for a sports betting business.
Light & Wonder, previously Scientific Games, said Friday that it completed the previously announced sale of OpenBet to Endeavor Group Holdings, Inc. for total gross proceeds of approximately $800 million.
The price tag consists of $750 million in cash, subject to certain customary adjustments, and 2,305,794 shares of Class A common stock of Endeavor.
Endeavor in 2016 bought the UFC for more than $4 billion.
The sale marks the final step, as part of the Light & Wonder’s strategic plan announced in June 2021, to streamline the organization and transform the company.
“Additionally, the sale positions OpenBet to build on their exceptional track record of innovation as part of Endeavor,” the Las Vegas-based games-maker said. “Light & Wonder has rapidly delivered on key commitments, including strengthening the balance sheet and positioning the company to unlock tremendous value as the leading cross-platform global games company.”
“With the completion of the OpenBet divestiture and our now streamlined organization, Light & Wonder is well positioned to execute on our growth strategy with a singular focus on building great games fully cross-platform,” said Matt Wilson, interim Chief Executive Officer of Light & Wonder.
“With our R&D engine and world class talent at our core, we have an unparalleled ability to leverage our leading industry positions, evergreen franchises and unmatched platforms to drive sustainable differentiation and significant value,” Wilson added. “I want to thank our teams for their hard work and dedication to ensure a quick and successful completion of this important transaction. Endeavor is the right partner for OpenBet and we wish our OpenBet colleagues all the best on this exciting new chapter.”
In September of last year, Endeavor praised the deal as transformative.
“OpenBet marks a strategic addition to our sports betting portfolio as we look to round out our technology and product offering for sportsbook operators and sports brands worldwide,” said Ariel Emanuel, CEO, Endeavor. “The combination of OpenBet and our IMG ARENA business will enable us to expand our footprint across the entire sports betting value chain and further capitalize on the tremendous upside we see coming from this fast-growing global industry.”