(Reuters) -Private equity firm Silver Lake will buy all shares of Endeavor Group Holdings it does not already own in the talent and media company, in a deal valuing the UFC-owner at $13 billion, the companies said on Tuesday.
As part of the deal, Endeavor stockholders will receive $27.50 per share in cash, representing a premium of 55% to the closing price of $17.72 before Silver Lake said it was working on a proposal to take the company private in October.
Shares were trading at $25.94 in afternoon trading.
Silver Lake is the largest shareholder in Endeavor, owning about 31% of the outstanding shares as of Dec. 31, according to LSEG data.
Late last year, Silver Lake said it was working to take Endeavor private, after the entertainment giant announced it had begun a review to explore alternatives that better value the company.
Endeavor had then said it was evaluating strategic options, but would not consider a sale or disposition of its majority interest in TKO Group Holdings, which includes a stake in Ultimate Fighting Championship.
TKO is not party to this transaction and will remain a publicly traded company, the companies said on Tuesday.
Hollywood power broker Emanuel, who is the CEO of Endeavor, has transformed the company, which has its roots in representing film and television talent, into a sports and entertainment powerhouse with more than 20 acquisitions.
(Reporting by Harshita Mary Varghese and Akash Sriram; Editing by Shilpi Majumdar)
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