Private equity company Forstmann Little has agreed a deal to sell the IMG agency to entertainment talent agency William Morris Endeavor and private equity firm Silver Lake Partners, it was confirmed this afternoon.
Financial details of the deal were not immediately disclosed, but reports suggest that the transaction will be worth $2.3bn (€1.7bn).
Forstmann Little received more than 20 first-round bids for the agency, but the final price is reported to be a few hundred million dollars below the price the private equity firm was hoping to reach. The Wall Street Journal newspaper said that a group led by the CVC Capital Partners investment vehicle had bid about $2bn for IMG.
IMG, which distributes rights for numerous sports properties through its IMG Media division, was acquired by Forstmann Little – the company founded by Ted Forstmann in 1978 alongside his brother Nick and his friend Brian Little – for $750m. Ted Forstmann passed away in 2011.
Morgan Stanley and Evercore served as financial advisers to Forstmann Little for the deal.