WME-IMG is in final negotiations to land a major $1.1 billion infusion led by a Canadian pension plan fund and a Singaporean wealth fund, an individual with knowledge of the investment told TheWrap.
This investment will set the agency’s value at $6.3 billion, up from it’s $5.5 billion valuation last year.
The $1.1 billion deal is being negotiated by WME-IMG and Silver Lake Partners, a private equity firm that holds a significant stake in WME-IMG. Silver Lake announced the deal Tuesday in a letter to investors. The deal is expected to close in mid-August.
Silver Lake said in the letter that the investment will make it possible to buy out minority partners in UFC and to allow some WME-IMG senior management employees and investors to take cash out as well as fund further acquisitions.
The Canada Pension Plan Investment Board and Government of Singapore Investment Fund are limited partners of Silver Lake. The latter has previously invested $750 million in WME-IMG in two rounds, once in 2012 and again in 2014.
Last year, WME-IMG acquired UFC with Silver Lake Partners and KKR as strategic investors. The deal is reported to have been $4 billion. Also last year, WME-IMG received a $250 million investment from Japan’s SoftBank and a $55 million from mutual fund giant Fidelity Management and Research Co.
The news was first reported by Variety.