Light & Wonder announced that it has completed the previously announced sale of its sports betting business, OpenBet, to Endeavor Group Holdings, Inc., for total gross proceeds of approximately $800 million, consisting of $750 million in cash, subject to certain customary adjustments, and 2.3 million shares of Class A common stock of Endeavor.
OpenBet has more than 1,000 team members situated across the globe, and focuses exclusively on licensed customers and regulated global gaming markets. It serves a client base that includes sportsbooks such as DraftKings, FanDuel, SkyBet, Ladbrokes and William Hill.
The sale marks the final step, as part of L&W’s strategic plan announced in June 2021, to streamline the organization by divesting all but its core land-based and internet gaming content business. Additionally, the sale positions OpenBet to build on its track record of innovation as part of Endeavor.
Light & Wonder has delivered on key commitments, including strengthening the balance sheet and positioning the company to unlock 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. 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.
“Importantly, with the completion of this sale, we have delivered on our key priority to transform our balance sheet, with a clear path to achieving our targeted net debt leverage Ratio range of 2.5X to 3.5X. With our high mix of recurring and digital revenues, double-digit growth profile, $1.4 billion of 2025 targeted consolidated AEBITDA and strong cash flow, we have created an opportunity to generate significant excess capital.
“Our enhanced financial flexibility accelerates our ability to return substantial capital to shareholders through our share repurchase program, while also pursuing our key growth initiatives, enabling us to unlock tremendous shareholder value going forward.”