Light & Wonder Strikes Major Amended Purchase Deal with Endeavor to Sell OpenBet

By | July 7, 2022

light-&-wonder-enters-into-amended-purchase-agreement-for-the-sale-of-openbet-to-endeavorLight & Wonder, one of the fastest-growing casino platform providers in the iGaming industry recently joined forces with well-known B2B brand Fantasma Games to help its new partner to launch products in Canada.

However, this time the provider turned focus on itself and its global expansion plan, as evidenced by the latest news.

Light & Wonder announced that it has taken a step that will see the conclusion of the amended purchase agreement. This deal will be signed between the provider and Endeavor Operating Company, LLC, and Endeavor Group Holdings.

As stated, the new partner has expressed a desire to purchase Light & Wonder’s sports betting brand, OpenBet.

Terms and Conditions?

Speaking of money, as agreed between these two giants, Light & Wonder will, thanks to this agreement, receive as much as $750 million in cash as well as $50 million in Class A common stock of Endeavor Group Holdings, Inc.

This significant move will also see Endeavor giving up on conditions that necessarily require regulatory approval by competent authorities such as the Nevada Gaming Control Board.

It is assumed that the transaction will be completed by the end of the third quarter of the year with the possibility of variation due to the necessary approvals and closing conditions.

Barry Cottle, President and Chief Executive Officer of Light & Wonder, commented on the major deal: ”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 Light & Wonder. OpenBet demonstrates continued momentum across their key markets and the amended terms of the transaction provide strong value for the business. The significant cash consideration from the OpenBet sale will enable us to further de-lever our balance sheet and achieve our Targeted Net Debt Leverage Ratio (1) range of 2.5x to 3.5x.”

But in the end, he also added: “This transaction is the final step in our journey to streamline our organization as we deliver on our promises as the leading cross-platform global game company. The cumulative proceeds from our divestitures, as well as our double digit growth profile and $1.4 billion 2025 Targeted Consolidated AEBITDA(1) resulting in strong cash flow generation, is expected to create tremendous value for our shareholders. Our enhanced financial flexibility will enable us to accelerate the return of significant capital to shareholders through our share repurchase program, while also investing in key growth initiatives.”

About

Previously known as Scientific Games Corporation, Light & Wonder is a Las Vegas, Nevada-based and leading cross-platform global B2B brand.

The company currently has over 5,000 employees, and highly educated experts.

Also, Light & Wonder’s business roots have expanded to as many as 6 continents.

Source:

“Light & Wonder Enters into Amended Purchase Agreement for the Sale of OpenBet to Endeavor’’, explore.lnw.com, June 30, 2022.

The post Light & Wonder Strikes Major Amended Purchase Deal with Endeavor to Sell OpenBet first appeared on RealMoneyAction.com.

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