The deal, which includes additional Endeavor brands, is valued at US$3.25 billion (£2.5bn)

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TKO Group,  the holding company of WWE and UFC, has reached an agreement with Endeavor to acquire IMG, along with Endeavor brands On Location and Professional Bull Riders (PBR).

The deal is an all-equity transaction valued at US$3.25 billion (£2.5bn).

IMG is one of the world’s largest global distributors and producers of sports content, packages and sells media rights and brand partnerships, and provides industry-leading strategic consultancy, digital services, and event management for more than 200 rights holders.

Clients include the National Football League, English Premier League, International Olympic Committee, National Hockey League, Major League Soccer, ATP and WTA Tours, the All England Lawn Tennis & Croquet Club (Wimbledon), EuroLeague Basketball, DP World Tour, and The R&A, as well as UFC, WWE, and PBR.

The acquisition of IMG does not include businesses associated with the IMG brand in licensing, models, and tennis representation. It also doesn’t include IMG’s full events portfolio. Adam Kelly will lead IMG as president.

On Location is a provider of premium experiences for fans attending more than 1,200 sporting events, including the Super Bowl, Ryder Cup, NCAA Final Four, FIFA World Cup 26, and the 2026 and 2028 Olympic and Paralympic Games, in addition to year-round live events organized by UFC and WWE. On Location president Paul Caine will continue to lead the organisation.

PBR is the world’s premier bull riding league, and organises more than 200 annual live events. It reaches more than 285 million households in more than 65 territories. PBR CEO and commissioner Sean Gleason will continue to lead the organisation.

Mark Shapiro, president and COO of TKO, said: “PBR, On Location, and IMG are industry-leading assets that meaningfully enhance TKO’s portfolio and strengthen our position in premium sports globally. Within TKO, they will help power the growth of our revenue streams and position us to capture even more upside from some of the most attractive parts of our sports ecosystem: media rights, live events, ticket sales, premium experiences, brand partnerships, and site fees. These assets are already built into our business strategy at TKO and will serve to further enhance our strong track record of execution across UFC and WWE.”

Ariel Emanuel, executive chair and CEO of TKO, added: “Today’s announcements reflect the continued strength of our underlying business and our commitment to deploying capital through a balanced capital allocation strategy, including through our share repurchase program and quarterly cash dividend program. This underscores our continued focus on delivering sustainable long-term value for our shareholders.”