Scientific Games signed an agreement to sell OpenBet, its sports betting business, to Endeavor Group Holdings in a deal valued at $1.2 billion.

According to a company statement, Scientific Games will receive $1 billion in cash and $200 million in Endeavor Class A common stock. The transaction is scheduled to close in the second quarter of 2022, after regulatory approval.

OpenBet is a global online sports betting company that focuses on sports content and technology, and offers services to operators around the world.

The group has more than 75 global customers, including 24 bookmakers in 12 states, and is a preferred business-to-business sports betting partner in most regions.

“This transaction represents the culmination of OpenBet’s thorough divestment process to maximize value to our shareholders and rapidly advance our vision of becoming the world’s leading cross-platform gaming company,” said Barry Cottle, President and CEO of Scientific Games.

“The transaction is a significant milestone in optimizing our portfolio and deleveraging the balance sheet to increase our financial flexibility.”

Ariel Emanuel, CEO of Endeavor, said: “OpenBet has built an incredible sportsbook suite anchored on its best-in-class betting engine and now includes expanded content, services and products for bookmakers and fans.”

“This set of capabilities is the ideal complement to our IMG ARENA sports betting business, which works directly with sports rights holders. We hope to grow these businesses together to capitalize on the strong secular tailwinds in the sports betting ecosystem,” concludes Emanuel .

About Scientific Games

As a global leader in the gaming and lottery industries, Scientific Games’ mission is to empower its customers by creating the best gaming and lottery experiences in the world.

Casino titles, interactive and instant lottery are designed to reach players wherever they are, whenever they want to play and in any channel: retail, casino or digital.

For over 85 years, the company has provided what customers and gamers value most: dependable security, creative content, operational efficiency and innovative technology.