MGM Resorts International placed a public tender offer for 100% ownership of the Swedish-based gaming giant LeoVegas AB on 2nd May 2022.
MGM Resorts International has a foothold in the US online gaming market with BetMGM, which has a revenue forecast of $1.3 billion for 2022. BetMGM offers sports betting and online gaming via BetMGM, Party Casino, Borgata Casino and Party Poker. The proposed takeover will expand MGM’s footprint as part of its ambitious drive to become a major player in Europe.
Gustaf Hagman, CEO & Co-Founder of the LeoVegas Group, had this to share on social media:
‘As the largest shareholder, I support the offer MGM Resorts announced today. I see huge potential in what LeoVegas and MGM could achieve together. MGM Resorts have been working on creating the best offline casino experience for a long time, and we’ve done the same for the online experience. Merging the two is a very exciting prospect. MGM Resorts has an ambitious agenda and financial muscles that would enable LeoVegas to grow quicker. Together we can make LeoVegas the largest igaming brand in the world!’
‘Given these circumstances, I think MGM is a perfect partner – and that’s why I am supporting this offer.’
The offer is for the issued and outstanding shares of LeoVegas at SEK 61.00 per share, a 44.1% premium on top of the current share value, and is subject to Swedish disclosure and procedural requirements. LeoVegas generated €393 million in revenue and €48 million in adjusted EBITDA from March 2021 to March 2022.
Bill Hornbuckle, CEO & President of MGM Resorts, stated in a press release:
‘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 realize the potential of our omnichannel strategy.’
‘We look forward to being able to welcome the LeoVegas team to our MGM Resorts family.’
LeoVegas was founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson. The group operate several successful brands including the flagship casino LeoVegas, Royal Panda, Pink Casino, 21.co.uk, and Slot Boss. The European gaming giant operates under gaming licences in eight jurisdictions and employs more than 860 people.
The LeoVegas Board of Directors echoed Gustaf Hagman’s support of the deal unanimously, which is expected to complete around September 2022.