Silver Lake to take Endeavor private in deal valuing UFC-owner at $13 billion

(Reuters) – Private equity firm Silver Lake has announced plans to acquire all outstanding shares of Endeavor Group Holdings, the talent and media company, in a deal valued at $13 billion, the companies revealed on Tuesday.

Under the agreement, Endeavor shareholders will receive $27.50 per share in cash, marking a 55% premium over the closing price of $17.72 before Silver Lake’s proposal to take the company private was disclosed in October. Shares were trading at $25.94 in afternoon trading.

As of December 31, Silver Lake held approximately 31% of Endeavor’s outstanding shares, making it the largest shareholder, according to LSEG data.

Last year, Silver Lake expressed its intention to take Endeavor private following the company’s announcement of a strategic review to explore alternatives aimed at better valuing the company.

While Endeavor confirmed it was assessing strategic options, it ruled out selling or disposing of its majority interest in TKO Group Holdings, which includes a stake in Ultimate Fighting Championship.

TKO Group Holdings will remain a publicly traded entity and is not part of the acquisition deal, the companies clarified on Tuesday.

Endeavor’s CEO, Hollywood power broker Emanuel, has spearheaded the company’s transformation from its origins in talent representation for film and television to a sports and entertainment conglomerate, fueled by over 20 acquisitions.