MGM Looks To Acquire Swedish Online Casino CompanyOffer Valued At More Than $600 Million |
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MGM Resorts International on Monday announced that it will likely be acquiring a Swedish online gambling firm.
MGM said in the announcement that it has commenced a recommended public tender offer for 100% of the shares of LeoVegas at a price of SEK 61.00 in cash per share, equivalent to a total tender value of about $607 million. MGM shares spiked about five percent on the announcement before giving back the gains.
The Las Vegas-based casino operator has market cap of more than $18 billion.
MGM is looking to bolster its online gambling business through international markets. The LeoVegas brand isn’t expected to be on offer in the U.S.
“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,” said MGM Resorts’ CEO & President Bill Hornbuckle. “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.”
He added that MGM believes “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 realize the potential of our omnichannel strategy. We look forward to being able to welcome the LeoVegas team to our MGM Resorts family.”
Founded in 2011, LeoVegas has licenses in eight jurisdictions primarily in the Nordics and rest of Europe. LeoVegas generated EUR 393 million in revenue and EUR 48 million in Adjusted EBITDA during the last twelve months ended March 31, 2022. The business is headquartered in Stockholm with offices in Malta, United Kingdom, and Milan.
MGM said that LeoVegas has operated profitably since 2014. From 2017 to 2021, LeoVegas’ revenues compounded annual growth rate was 16%.
The acceptance period of the offer is expected to commence on or around June 2022 and expire on or around August 2022. 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.
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