Endeavour Group has secured a re-evaluation of its acquisition of Openbet from Light and Wonder –  a deal that was originally valued at $1.2 billion (€1.05bn). 

Yesterday, dealmakers disclosed that a new purchase price for Openbet had been settled by Endeavor and Light and Wonder, which revalued the sportsbook platform provider at $800 million (€760m).

The original terms agreed upon last September saw Hollywood-based sports group Endeavor agree to acquire Openbet for $1 billion in cash, combined with 7.6 million newly issued shares at a market value of $200 million.

However, ‘amending the purchase agreement’, Endeavor has revised down its offer by 33% to $800 million. This will see Light and Wonder receive a 750 million cash settlement, and a $50 million reward of Class-A common stock.

The board of Light and Wonder has recommended the revised offer, commenting on the transaction – “The amended purchase agreement provides a strong valuation in the current market and also increases the speed and certainty of closing by modifying the conditions for closing, including Endeavor’s agreement to waive the closing condition requiring regulatory approval by the Nevada Gaming Control Board, if required.”

Endeavor declined to comment beyond the filing, which didn’t provide a reason for the downward revision.

The owner of the UFC, IMG, EuroLeague Basketball, Miss Universe and William Morris Agency – Endeavor made its NYSE debut in April 2021 after securing a +$10 billion valuation, billing itself as the “disruptive entertainment group for a new generation of audiences”, in which Openbet will serve as its first sports betting asset

Openbet is recognised as sports betting’s leading systems supplier, servicing 75 customers worldwide including the tier-1 betting firms of Sky Bet, William Hill and Ladbrokes.

The firm’s US clients include TheScore, DraftKings, BetMGM and FanDuel, which will be monitoring Endeavor developments closely as the marketplace and its technology landscape are further reconfigured by M&A activities

Dealmakers expect the acquisition to be completed by the third quarter trading of 2022.