MGM Bids for LeoVegas Group

MGM Resorts International

MGM Resorts, a prominent US casino operator, has voiced its plans to acquire Swedish iGaming brand LeoVegas. The offer stands at €575m and is already unanimously well-received by the board. The bid amounts to a 44.1% premium on the Swedish company’s closing price (SEK 42.32). MGM Resorts officials believe the purchase will give them a unique chance to form a scaled global iGaming business. If everything goes well, the complete transaction should go through for $607m. This announcement is a big piece of news across the industry that seems to be ready for another important acquisition.

Additionally, MGM has already stated the three main reasons for this purchase. They include strategic chances to expand the business outside the US and the opportunity for an experienced iGaming management team. Add superior technology capacities and continuous profitable growth since 2014, and you have a world of possibilities. This move would enable both enterprises to expand their global influence across the markets. Both brands are vital for the industry and have a lot to offer their customers, so punters have a lot to hope for.

Growing Global Reach

MGM’s goals have already been clearly stated, with representatives voicing their excitement over the impending transaction. CEO and President Bill Hornbuckle has noted they want to be the world-leading gaming entertainment company. This offer represents a vital step towards the goal and the opportunity to expand their global presence. Having already achieved success with BetMGM in the US, this transaction will speed up the firm’s digital growth. The blended teams of the two companies will utilize the omnichannel strategy potential. They cannot wait to welcome the LeoVegas family to their team.

LeoVegas is a Stockholm-based enterprise with licenses in eight jurisdictions, mainly in Scandinavia and the rest of Europe. The company gathered €393m in revenue and €48m in adjusted EBITDA throughout the last twelve months. Moreover, the LeoVegas Board of Directors has allowed MGM to offer an incentive plan to key people, confirming the suggested plan is in accordance with the Takeover Rules. A statement from the Swedish Securities Council is proof of that, so there should be no legal obstacles in the way. There is no announcement about precise dates, but the new acquisition is indubitably on the horizon. Both sides have expressed interest in completing the transaction, but only time will tell when it will take place.

Largest Brand in the World

LeoVegas CEO, Gustav Hagman, has also expressed his excitement about the takeover, voicing his support. The largest shareholder has written that he sees great potential in the two companies’ possible achievements after the transaction. He has recognized MGM Resorts’ efforts to deliver the best casino experience offline, adding his company has been attempting to do the same online. The merger is a thrilling prospect, for MGM has ambitious goals and enough money to help LeoVegas proliferate. Upon this acquisition, the most prominent world iGaming brand could be in the making, and MGM makes the perfect partner for the venture.

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