Endeavor has agreed to sell its sports betting assets OpenBet and IMG Arena to OB Global Holdings LLC in a management buyout that is backed by the comapny’s CEO Ari Emanuel.

The company announced on Monday that OB Global Holdings will acquire the businesses for approximately $627 million CAD, subject to certain adjustments. The transaction will be financed through a mix of cash and debt.

The buyout is backed by Endeavor chief Emanuel and OpenBet executives including CEO Jordan Levin, said an Endeavor release.

Endeavor acquired OpenBet, which now powers responsible betting and gaming entertainment for more than 200 operators around the globe, from Light & Wonder in September 2022 for $800 million USD ($1.1 billion CAD at today’s rate).

A strong first half of 2024 saw OpenBet’s global customer base increase by more than 40% year-on-year. It also launched a regulatory technology vertical following the acquisition of Neccton and launched a geolocation technology service OpenBet Locator. Endeavor formally merged OpenBet and IMG Arena under one banner under the OpenBet name earlier this year.

Led by Levin, OpenBet will continue to operate as normal post-transaction.

“This management buyout allows us to continue executing our vision for increased market expansion and product innovation,” Levin said. “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.”

OpenBet operates in the majority of Canadian provinces.

A step towards Silver Lake deal

OpenBet said the transaction is a necessary step for the closing of the proposed $18 billion CAD sale of Endeavor to private equity firm Silver Lake, which was first announced in April. Silver Lake is the biggest investor in Endeavor, holding around 31% of outstanding shares as of the end of 2023.

If all remains on track, the take-private deal is expected to close by the end of the first quarter of 2025.

In an August earnings call, Endeavor revealed it had begun the formal process to sell OpenBet and IMG Arena to prospective buyers. On Monday, as part of the buyout announcement, the company confirmed it will continue to market IMG Arena for sale to a third-party purchaser before and after closing.