MGM Resorts International has announced that it has made an offer to acquire Swedish online gambling company LeoVegas in a deal worth $607 million (€575 million).
the LeoVegas board has unanimously recommended acceptance of the offer
The deal offers a 44.1% premium on the LeoVegas most recent closing price of SEK 42.32. According to a press release issued in relation to the offer, the LeoVegas board has unanimously recommended acceptance of the offer.
A statement released today by MGM Resorts explains that the deal will help the US casino operator to create a scaled global online gaming business.
Speaking of the deal, MGM Resorts’ CEO & President Bill Hornbuckle said:
“Our vision is to be the world’s premier gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world.
We have achieved remarkable success with BetMGM in the U.S., and with the acquisition of LeoVegas in Europe we will expand our online gaming presence globally. We believe that this offer creates a compelling opportunity that allows the combined teams of MGM Resorts and LeoVegas to accelerate our global digital gaming growth and fully realise the potential of our omnichannel strategy. We look forward to being able to welcome the LeoVegas team to our MGM Resorts family.”
The release identifies the three key drivers for the acquisition:
- Strategic opportunities to accelerate growth and product offerings outside of the US.
- The company’s experienced online gaming management team and superior technology capabilities.
- LeoVegas’ profitably as a high-growth platform since 2014.
LeoVegas is currently headquartered in Stockholm and hold licenses for operation in eight jurisdictions throughout Europe. The company generated €393 million in revenue over the 12 months ending March 31st, 2022 and EBITDA of €48 million for the same period.
In its release, LeoVegas also stated that the Swedish Securities Council has confirmed that a proposed incentive plan for certain key level employees at the company complies with the country’s takeover rules.
The offer is subject to certain regulatory approvals, the receipt of valid tenders of more than 90% of LeoVegas’ shares and customary closing conditions. It is expected to be completed during the second half of fiscal year 2022.
An experienced iGaming commentator and analyst based in New York City - Jenny reports on regulation and gambling industry news and events.