MGM Resorts International announced that its public tender offer for LeoVegas AB has been accepted at SEK 61.00 in cash per share, equivalent to a total tender value of approximately $604 million.
Settlement is expected to be initiated at the end of the week.
LeoVegas generated EUR 394 million in revenue and EUR 46 million in Adjusted EBITDA during the twelve months ended June 30, 2022.
The business is headquartered in Stockholm with major offices in Malta, United Kingdom, and Milan.
Bill Hornbuckle, MGM Resorts’ CEO & President, said in a statement: “The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide,”
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximize the full potential of our omnichannel strategy.”
Gustaf Hagman, LeoVegas Group CEO, said: “Joining forces with MGM Resorts is a major win for LeoVegas and we’re excited to begin working with our new teammates to build upon the work we’ve done over the last 10 years.”
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”
Founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, LeoVegas is a leading global online gaming company with licenses in nine jurisdictions primarily in the Nordics and the rest of Europe.
LeoVegas generated EUR 394 million in revenue and EUR 46 million in Adjusted EBITDA(ii) during the twelve months ended June 30, 2022.
The business is headquartered in Stockholm with major offices in Malta, United Kingdom and Milan.
MGM Resorts expects the acquisition of LeoVegas to provide a unique opportunity for the Company to create a scaled global online gaming business. Among LeoVegas’ attributes:
Strategic Opportunities to Accelerate Growth and Product Offerings: LeoVegas’ online casino and sports betting capabilities and strong customer base outside of the U.S. is expected to further expand MGM’s global presence.
Experienced Online Gaming Management Team and Superior Technology Capabilities: LeoVegas’ management team has demonstrated the ability to develop a robust and scalable technology platform with advanced product offerings.
Commitment to Continued Profitable Growth: LeoVegas has operated profitably as a high-growth platform since 2014. From 2017 to 2021, LeoVegas’ revenues compounded annual growth rate was 16%, while maintaining strong profitability.
MGM Resorts’ scale, brands, and expertise will allow the combined businesses to expand within existing gaming segments and provide incremental opportunities to enter new areas.
