US casino operator MGM Resorts International has confirmed that it has made an offer to purchase Swedish online casino company LeoVegas in a deal that MGM reports is worth $607 million (€575 million).
The deal offers a 44.1% premium on the company’s most recent closing price
The deal has been unanimously recommended by the LeoVegas board and offers a 44.1% premium on the company’s most recent closing price of SEK 42.32.
MGM Resorts has stated that the acquisition of LeoVegas will help the company to create a scaled global online gaming business.
MGM Resorts’ CEO & President Bill Hornbuckle said of the deal:
“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.”
According to the statement, MGM has identified the LeoVegas’ experienced online gaming management team and technological capabilities as a major factor in the acquisition.
LeoVegas holds licenses for operation in eight jurisdictions throughout Europe and generated $414.5 million (€393 million) in revenue over the 12 months ending March 31st, 2022. This resulted in EBITDA of $50.6 million (€48 million) for the same period.