Endeavor Group has agreed a deal to sell its OpenBet and IMG Arena businesses to OB Global Holdings via a management buyout.
The buyout of the sports betting and data businesses is backed by Endeavor chief executive Ariel Emanuel with participation from executives of OpenBet, including CEO Jordan Levin.
The management buyout comes after the businesses were put up for sale in August alongside other non-core assets of Endeavor.
OB Global Holdings will acquire OpenBet and IMG Arena for approximately $450 million, subject to certain adjustments, with the transaction financed through a mix of cash and debt.
During the sale process and post-closing, IMG Arena will continue to be marketed for sale to a third-party.
“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” said Jordan Levin.
“Our group is extremely confident in OpenBet’s future considering the premium product offering, superior talent, and solid foundation we already have in place following a strong period of business growth.”
Oakvale Capital and The Raine Group acted as financial advisors to Endeavor.
OpenBet was acquired by Endeavor in 2021 for $800 million and is being sold as part of the Endeavor take-private deal with Silver Lake, which was announced in April.
The OpenBet and IMG Arena management buyout follows last month’s management buyout of Endeavor’s IMG, Professional Bull Riders (PBR) and On Location businesses.
Shares in Endeavor Group Holdings Inc. (NYSE:EDR) closed 0.17 per cent lower at $28.90 per share in New York Monday, and were up 3.81 per cent at $30.00 per share in after hours.