It could be a case of from Las Vegas to LeoVegas. MGM Resorts have made a €575m offer for the Swedish online gaming company LeoVegas. The American giant sees the deal as part of their aim of becoming the world’s premier gaming entertainment company.
The chances of the deal going ahead look good. Acceptance of it has already been unanimously agreed by the LeoVegas board. The offer that has been made is a 44.1 per cent premium on the LeoVegas closing price of SK 42.32.
Acquiring the Swedish company would be an important step for MGM Resorts. Their CEO and President is Bill Hornbuckle, and he sees this as a chance to “continue to grow our reach throughout the world.”
Recent years have seen MGM achieve what Mr Hornbuckle describes as “remarkable success” in the US. That’s been achieved with BetMGM which has taken advantage of the expansion seen in the US gambling industry.
There are three main reasons why MGM are so interested in this acquisition of LeoVegas. The CEO and President believes the offer made to LeoVegas is a “compelling opportunity” that will see them “accelerate our global digital gaming growth.”
They are also keen to work with an online gaming management team that has plenty of experience and work with superior technology capabilities. Also, they will be working with a company that has been profitable for eight years.
Gustav Hagman is the CEO of LeoVegas and a co-founder of the company. He made a statement on Linkedin that supported the offer made by MGM. He sees “huge potential” in what the two companies could achieve together.
The largest shareholder in LeoVegas believes that MGM Resorts offer “the best offline casino experience” and it’s been that way for “a long time.” He added that LeoVegas have been doing the same with their online offering. Therefore, he feels “merging the two is a very exciting prospect.”
This deal would, Mr Hagman believes, enable LeoVegas to “grow quicker” due to the “ambitious agenda and financial muscles” of the American company. He added that the deal “can make LeoVegas the largest igaming brand in the world.” Describing MGM as “a perfect partner,” he declared his support for the offer.
LeoVegas hold eight licenses in the Nordics and other parts of Europe. In the 12 months up to March 31, 2022, their revenue was 393m euros with 48m in adjusted EBITDA.
Their board of directors have given permission to MGM to offer certain LeoVegas employees a management incentive plan. Another step forward for MGM is agreement with the Swedish Securities Council that this is compatible with their takeover rules.
