Endeavor Group Holdings has entered into an agreement to acquire OpenBet, a leading content, platform, and service provider to the sports betting industry, from Scientific Games Corporation for $1.2 billion paid through a combination of cash ($1 billion) and Endeavor’s Class A common stock ($200 million).

The acquisition will complement Endeavor’s position within the sports betting ecosystem, currently anchored by IMG ARENA, which works with more than 470 leading sportsbook brands worldwide to deliver official live streaming video and data feeds for more than 45,000 sports events annually.

The combination of OpenBet and IMG ARENA will create a unique end-to-end solution, delivering official data and video streams, premium content, cutting-edge mobile products, and best-in-class betting technology solutions to leagues, federations, and sportsbooks worldwide.

“OpenBet marks a strategic addition to our sports betting portfolio as we look to round out our technology and product offering for sportsbook operators and sports brands worldwide. The combination of OpenBet and our IMG ARENA business will enable us to expand our footprint across the entire sports betting value chain and further capitalize on the tremendous upside we see coming from this fast-growing global industry,” Ariel Emanuel, CEO of Endeavor, said.

“This transformational announcement combines OpenBet’s market-leading sports betting ecosystem with unparalleled access to sports rights, content and data across the Endeavor portfolio. Together, we are uniquely positioned to define the future of sports betting entertainment. Putting our customers and their players at the heart of our product and technology innovation will remain the key to our ongoing success. The team at OpenBet is second to none and we’re laser focused on the rapid expansion of the global sports betting market. Ari’s leadership and vision for the entertainment industry is exceptional and this is supported by Scientific Games’ commitment to Endeavor through the stock component of this deal,” Jordan Levin, Chief Executive of Scientific Games’ Digital business, said.

The transaction is expected to close in the second quarter of 2022, subject to regulatory consents and approvals, and customary closing conditions.