MGM Resorts International is closing in on completion of a deal to acquire iGaming powerhouse Leo Vegas.
The impending sale was all but confirmed for next week after 96% of Leo Vegas shareholders voted in favor of accepting MGM’s $604m (€602.8m/£521.1m) offer.
The LeoVegas board has already unanimously approved the original tender deal submitted by MGM in May 2022, which called for MGM to pay SEK 61.00 in cash per share (44% premium to LeoVegas’ April 29th closing price).
With all regulatory and government approvals secured, MGM indicated the expectation that settlement of the shares will be initiated by 7 September.
MGM Chief Speaks
MGM Resorts’ chief executive and president Bill Hornbuckle talked about the significance of the deal:
“The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide.”
Bringing in LeoVegas
Hornbuckle expanded on the significance of bringing LeoVegas into the fold:
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximise the full potential of our omnichannel strategy.”
MGM Announcement Details
MGM called the acquisition of Stockholm-based LeoVegas a “unique opportunity” for the group to establish a scaleable global online business presence, and looked forward to the strategic opportunities for accelerating growth and expanding product offerings:
“From 2017 to 2021, LeoVegas’ revenues compounded annual growth rate was 16% while maintaining strong profitability.”
MGM’s Scaleable Brand
Contributing to this strong growth are MGM’s scale, brands, and expertise. MGM indicated will now combine all holdings to “expand within existing gaming segments and provide incremental opportunities to enter new areas.”
LeoVegas has confirmed it will de-list its shares from NASDAQ, after issuing a stock statement on September 1st that the last day of trading of LeoVegas shares would be announced shortly.
Momentum Going In
Both companies are performing strongly: MGM reported a 54.3% year-on-year rise in revenue H1 2022, and LeoVegas generated €394m in revenue and €46m in adjusted EBITDA in the 12 months ending 30 June, 2022.
LeoVegas Leader Speaks
LeoVegas group CEO Gustaf Hagman expressed his organisation’s excitement by calling the joining of forces with MGM a “major win,” adding:
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”
The integration of one of the leading land-based casino entities with one of the globe’s premier iGaming operators is sure to create a juggernaut revenue merger.