US-based iGaming giant Light & Wonder has updated its OpenBet platform sale to Endeavor Operating Company, LLC and Endeavor Group Holdings, Inc. 

According to the update, the online casino and sports betting tech and software provider has agreed to sell the platform for $400 million less than the initial price after amending its formal purchase agreement with the buyer on Thursday.

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OpenBet will now sell for an aggregate of $800 million

Under the new arrangement, Light & Wonder will earn $750 million in addition to $50 million in Class A common shares for the OpenBet platform. 

This will result in gross revenues of $800 million and expected after-tax net profits of $700 million. The transaction takes into consideration the present market conditions and Endeavor’s willingness to waive the closing condition if necessary. 

The transaction is expected to conclude by the end of the third quarter of this year, pending normal closing conditions and regulatory clearances. 

Light & Wonder recently sold its Lottery segment, and the sale of the OpenBet platform increases the company’s war fund by $5.6 billion after taxes. Barry Cottle, CEO and president of Light & Wonder, emphasized the company’s commitment to selling the platform while highlighting Endeavor’s prominence in the gaming and gambling business. 

Cottle contends that OpenBet’s outstanding performance in the particular areas targeted by Endeavor will increase the company’s value. In the meanwhile, Light & Wonder will concentrate on deleveraging the company’s financial sheet and achieving its goals. The desired net debt leverage ratio is between 2.5x and 3.5x.

Light & Wonder Closer to Achieving Ultimate Objective

The sale and updated agreement are one of the last stages toward reaching the objective of simplifying Light & Wonder and ensuring that the firm remains one of the top worldwide cross-platform game developers. 

With more financial flexibility, the firm will be able to expedite the return of considerable cash to shareholders via their share buyback program, while simultaneously investing in critical growth projects,” Cottle said. 

In addition, he said that Endeavor is the ideal partner for OpenBet, and that the updated agreement boosts speed and certainty by simplifying the process of finalizing the transaction while releasing significant advantages for OpenBet and Light & Wonder.

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