(Reuters) - Endeavor Group will sell its OpenBet and IMG Arena businesses to management-led group OB Global backed by Hollywood power broker Ari Emanuel for about $450 million, the sports and entertainment company said on Monday.
The deal, which includes participation from OpenBet executives including CEO Jordan Levin, is a "necessary step" for the closing of Endeavor's take-private deal, it said.
Private equity firm Silver Lake in April had struck a $13 billion deal to take Endeavor private. The deal is expected to close by the end of the first quarter of 2025.
OB Global will finance the deal through a mix of cash and debt, Endeavor said. Levin will continue to lead OpenBet, a sports betting entertainment firm, after the deal closes.
"This management buyout allows us to continue executing our vision for increased market expansion and product innovation," Levin said.
Endeavor said it would continue to market IMG Arena for sale to a third-party purchaser prior to and after closing the deal.
IMG Arena delivers live streaming and data feeds for more than 65,000 events across multiple sports.
The transaction is dependent on and expected to close immediately prior to the closing of Endeavor's take-private deal.
Raine Group and Oakvale Capital were the financial advisers to Endeavor.