Scientific Games (NASDAQ:SGMS) is selling its OpenBet sports wagering concern to Endeavor Group Holdings, Inc. (NYSE:EDR), the parent company of the Ultimate Fighting Championship (UFC), for $1.2 one thousand million inward immediate payment and equity.

Under the terms of the agreement, Los Angeles-based Endeavor is paying $1 1000000000 inward cash and $200 1000000 of its shares to purchase OpenBet.

OpenBet is ace of the world’s leading world-wide online sports betting engineering companies, offering an ecosystem of sports content, technology, and services to the largest operators around the world,” according to a financial statement issued past Scientific Games. “To date, OpenBet has over 75 worldwide customers, including 24 sports books crosswise 12 states, and a 100 percent uptime register crossways major sporting events.”

In late June, Scientific Games announced plans to disinvest OpenBet and its SG Lottery building block inward an effort to cut back its debt burden. At that time, it was believed the separations could add up inward the form of an initial public offering (IPO), a merger with a special resolve acquisition company (SPAC), or an outright sale or a combining with another entity.

Endeavor Endeavoring Into Sports Wagering

OpenBet will potential follow folded into Endeavor’s Owned Sports Properties segment, which includes UFC, the Professional Bull Riders (PBR), and Euroleague.

OpenBet could live a sensitive increase for the company, which also runs the IMG Academy, produces unrecorded events, and controls i of Hollywood’s biggest talent agencies. Endeavor also operates IMG Arena, which provides streaming video and information services to sportsbooks, indicating thither are potency synergies by adding OpenBet to the mix.

Although UFC is popular among bettors, possible conflicts of interest group past adding OpenBet should follow non-existent. That’s because OpenBet isn’t a consumer-facing sportsbook. Rather, it’s a political platform and engineering provider that counts gaming operators among its clients. Those include DraftKings, FanDuel, William Hill, and WynnBet.

“This potentiality band is the nonpareil full complement to our IMG ARENA sports betting business, which workings direct with sports rights holders. We look frontward to growing these businesses unitedly to take advantage on the warm secular tailwinds inwards the sports betting ecosystem,” said Endeavor CEO Ariel Emmanuel inwards the statement.

Another Transaction Looming for Scientific Games

The sales event of OpenBet is scheduled to tightlipped inward the secondment canton of 2022.

In the meantime, Scientific Games is mulling options for the SG Lottery unit. Recent venture indicates the companion may follow leaning toward itemization the stage business inward Australia. That’s where the initial public offering (IPO) could bidding a valuation of $5 billion.

However, private equity firms Phoebus Apollo Global Management (NYSE:APO), Carlyle Group, and TPG Capital are said to live considering bids for the lotto business.

Scientific Games said shoemaker's last week that if it commences an IPO of SG Lottery, it will retain only if a minority interest inward the fresh public entity.