04:17 PM EDT, 04/02/2024 (MT Newswires) -- Endeavor Group ( EDR ) agreed to be taken private by private equity firm Silver Lake in a $13 billion buyout deal, a move company leaders said Tuesday will accelerate growth in the fast-evolving sports and entertainment space.

Silver Lake, in partnership with the Endeavor management team and additional anchor investors, will acquire the remaining shares in the sports and entertainment company that the private equity firm does not already own.

The per-share cash consideration of $27.50 represents a 55% premium to Endeavor's stock price on Oct. 25, the last session before the company announced it was reviewing strategic alternatives. Silver Lake announced late in October that it owned 71% of Endeavor's voting power and was planning a proposal to take the company private.

"We believe this transaction will maximize value for all of Endeavor's public stockholders and are excited to continue to unlock and invest in the growth opportunities ahead as a private company," Endeavor Chief Executive Ariel Emanuel said in a statement.

Endeavor is the majority owner of TKO Holdings (TKO) that owns the fighting brands WWE and UFC. When consolidating all of TKO's value into Endeavor, "the combined total enterprise value of $25 billion will make this the largest private equity sponsor public-to-private investment transaction in over a decade, and the largest ever in the media and entertainment sector," according to a statement.

TKO "is not party to this transaction and will remain a publicly traded company," Endeavor said. Shares of Endeavor closed 2.1% on Tuesday while those of TKO climbed 5.2%.

Endeavor's annual revenue has soared to $6 billion from $350 million when Silver Lake first invested in the company in 2012, according to Egon Durban, Silver Lake's co-CEO and chairman of Endeavor's board. The deal aims to "create value by accelerating growth at scale," Durban said.

"Now, Endeavor can take advantage of its unique core platform to meet the dynamic forces driving growth in content, sports, and live events with bold vision," he said.

Silver Lake has made direct investments of more than $3.5 billion in Endeavor over 12 years, according to Silver Lake Managing Director Stephen Evans, who is also an Endeavor director.

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