Light & Wonder lowers asking price for sale of OpenBet
It will now ask for $750m and $50m in stock from Endeavor to complete the sale.
Light & Wonder (L&W) asked for a lowered price of $750m and $50m in stock from Endeavor for the sale of OpenBet. The initial valuation was $1.2bn. The company cited the need for speed and certainty regarding its decision to lower its asking price as well as the need to modify the deal.
One such modification is Endeavor’s agreement to waive the closing condition requiring regulatory approval by the Nevada Gaming Control Board if required. Under the revised terms, the sale is now expected to close by the end of the third quarter this year (compared to the previous estimate of the second quarter of 2023).
The closing of the sale is still subject to regulatory approvals and customary closing conditions. This sale, when combined with the recent sale of its lottery business, will generate $5.6bn in after-tax proceeds for L&W, according to the company.
L&W President and CEO Barry Cottle says the amended deal will create an easier path for all companies involved. He says: “Endeavor is the right partner for OpenBet and the amended agreement increases speed and certainty by creating a simplified path to closing the transaction, while unlocking substantial benefits for OpenBet and L&W.”
Cottle also highlights the financial sense of the speedy completion of this deal for L&W. He claims: “OpenBet demonstrates continued momentum across its key markets and the amended terms of the transaction provide strong value for the business.
“The OpenBet sale will enable us to further de-lever our balance sheet and achieve our targeted net debt leverage ratio range of 2.5x to 3.5x. It will double our digit growth profile and $1.4bn 2025 targeted consolidated AEBITDA, resulting in strong cash flow generation that is expected to create tremendous value for our shareholders.”
OpenBet is a leading global online sports betting technology company, providing sports content, technology and services to the largest operators around the world. It is a prominent business-to-business sports betting partner in North America, the UK and Australia.
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