MGM Resorts Offers $607M to Acquire LeoVegas

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MGM Resorts International, the towering lion with leading properties in Las Vegas, Macau, and beyond has offered Sweden’s LeoVegas AB about $607 million in a bid for a complete takeover of the online operator.

According to a press release from MGM, acceptance of the offer would see the Las Vegas-based company procure 100% of the shares at a price of SEK 61.00 per share (~$6.17) and the deal would be financed with existing cash. The deal is not expected to disrupt MGM Resorts’ earnings or cash flow per share.

While not the company’s first venture into online sports betting and gaming, MGM Resorts believes the acquisition will give it a unique opportunity to grow its global gaming business. Beginning in the United States with the opening of several sportsbetting markets, its BetMGM mobile betting app also includes online casino games in the markets where that is allowed.

Capitalizing on a ‘strategic opportunity with LeoVegas’

MGM Resorts’ CEO & President Bill Hornbuckle commented on the company’s thinking: “Our vision is to be the world’s premiere gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world.”

Hornbuckle continued, “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.”

Regardless of any potential rebranding, and none is expected, there couldn’t be a more fitting match-up out there than for the Lion of Vegas to acquire or be acquired by the Lion of Vegas.

Innovative, Expansive, and Multi-faceted

LeoVegas came to be in 2011 and made an immediate stir in the online gambling pool with solid innovative products and the occasional splashing sound of acquisitions or offloads. The Stockholm-based concern holds licenses in eight jurisdictions, mostly in the Nordic region, but spread throughout Europe. LeoVegas has major offices in Stockholm, Malta, the United Kingdom, and Milan.

Along with well-known casino brands such as its namesake and the company has created live dealer casino products like Authentic Gaming which was later acquired by Genting and most recently by Scientific Games (Light & Wonder), as well as Blue Guru Games through LeoVentures.

Assuming MGM’s ability to reach agreements for at least 90% of LeoVegas shares as well as regulatory approval, the deal is expected to be fully consummated during the second half of this fiscal year.

Source: MGM Resorts International Announces Offer To Acquire Global Online Gaming Company Leovegas, PR Newswire, May 02, 2022

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