The sale of Light & Wonder’s (L&W) sportsbook business OpenBet has been finalised, as Endeavour Group Holdings takes control of the brand for $800m.
Terms of the contract will see Endeavour pay $750m in cash, subject to customary adjustments, in addition to 2.3m shares of Class A common stock.
L&W states that it is poised to ‘unlock tremendous value’ following the divestment, securing a new position in the cross-platform global games market.
The firm has highlighted the fact that it ‘rapidly delivered on key commitments’ throughout the transaction, with further funds available to drive down group debt and adjust its balance sheet.
Matt Wilson, L&W interim CEO, said: “With the completion of the divestiture and our now streamlined organisation, Light & Wonder is well positioned to execute on our growth strategy with a singular focus on building great games fully cross-platform.
“With our R&D engine and world-class talent at our core, we have an unparalleled ability to leverage our leading industry positions, evergreen franchises and unmatched platforms to drive sustainable differentiation and significant value.
“I want to thank our teams for their hard work and dedication to ensure a quick and successful completion of this important transaction. Endeavour is the right partner for OpenBet and we wish our OpenBet colleagues all the best on this exciting new chapter.”
For L&W, the sale marks the final step in its corporate plan to divest certain business divisions and streamline the company.
The finalisation follows the sale of L&W’s lottery division for $5bn to Brookfield Business Partners, a development described as ‘transformative’ for its impact in reducing the company’s debt ratio.
Wilson continued: “Importantly, with the completion of this sale, we have delivered on our key priority to transform our balance sheet, with a clear path to achieving our Targeted Net Debt Leverage Ratio range of 2.5x to 3.5x.
“With our high mix of recurring ad digital revenues, double-digit growth profile, $1.4bn of 2025 Targeted Consolidated AEBITDA and strong cash flow, we have created an opportunity to generate significant excess capital.
“Our enhanced financial flexibility accelerates our ability to return substantial capital to shareholders through our share repurchase program, while also pursuing our key growth initiatives, enabling us to unlock tremendous shareholder value going forward.”