Endeavor to Buy Sports Betting Company for $1.2B

Endeavor to Buy Sports Betting Company for $1.2B

Endeavor is buying Open Bet from Scientific Games for $1.2 billion. The acquired company is an organization having about 1000 employees worldwide. The price of the acquisition of $1.2 billion will be paid through a combination of $1 billion in cash along with $200 million of Class A Common Stock of the acquirer. Subject to legal and regulatory requirements, the acquisition is expected to be completed by the second quarter of 2022.

The synergy of the acquisition

According to Endeavor, the acquisition of the sports gambling company will help complement its position in the business of gambling. The strategy of the company is currently focussed on IMG Arena. The strategy is currently to work with more than 470 sportsbooks brands on a worldwide basis in order to provide live data feeds and streaming videos for over 45000 sports events on a yearly basis.

The clients of the right holder, IMG Arena include Ryder Cup, PGA Tour, UFC, USTA, ATP, Major League Soccer, Wimbledon as well as the Football Association. Open Bet that is based in the United Kingdom has exclusively focussed on licensed customers as well as regulated gaming markets globally.  Its betting engine in 2020 has processed 3 million bets approximately. Apart from this, the company also has trading, risk management, and pricing tools, wallet solutions, and player account and content offerings as well.

Stock Market reaction to the acquisition

The share price of Endeavor rose by 14% in after-hours trading after news of the acquisition was released. The share price of Scientific Games that owns Open Bet went up by 4%. Ari Emanuel, CEO of Endeavor stated that this acquisition is important to the company from a strategic point of view as this was an important addition to the sports portfolio of the company.

The company is looking forward to offering the best sports offerings and technology to sportsbook brands and sportsbooks operators worldwide. IMG Arena and Open Bet as a combination will help the organization expand its footprint across the value chain in the sports betting business. The organization expects to see a huge upside as regards growth and expansion in one of the fast-growing business sectors of the world.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.