When The Acquisition Begun
The request was submitted on May 2nd, 2022, when MGM expressed interest in acquiring LeoVegas at a tender value of $607million. The amount was 44.1% more than the LeoVegas closing price which is SEK 42.32 Swedish. The acceptance was granted in August 2022.
LeoVegas believes that the deal is a major win for the company. LeoVegas Group CEO, Gustaf Hagman explained: “MGM Resorts is a premier gaming entertainment company, and we look forward to leveraging their expertise to further our long-term strategic goals.”
Robin Ramm-Ericson and Hagman founded LeoVegas in 2011. And had it licensed in nine jurisdictions, predominantly in Scandinavia and other European countries.
In FY22, LeoVegas generated huge revenue of up to $395.2m, and in adjusted EBITDA, it managed to generate up $46.2m for the year ended 30th June 2022.
What Next after MGM Resort Announcing Its Public Tender Offer for Acquisition of LeoVegas Was Approved?
The following are some ways through which MGM will benefit from the acquisition of LeoVegas Public Tender Offer.
Boosted presence of the MGM Resort Across the Globe-LeoVegas Operator’s huge customer base in other regions outside the United States is expected to boost MGM Resort International’s presence further worldwide.
Bill Hornbuckle, CEO, and President of MGM Resorts noted that “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.”
Superior Technology and Experienced Online Gaming Administrators-LeoVegas has an outstanding administrative team with incredible abilities to create powerful and scalable technology platforms featuring advanced offerings. This will bring a huge boost to MGM Resorts.
Sustained Growth-Since 2014, LeoVegas has enjoyed profitable operations and has portrayed itself as a high-growth platform. Between 2017 and 2021, the annual growth rate of the operator was 16%, with strong profitability.
When combined with MGM Resort’s scale, brand, and proficiency, the two businesses are expected to grow within the current gaming segments and allow incremental opportunities to explore new areas.