On Monday, MGM Resorts International announced a $607 million deal to purchase LeoVegas AB, a Swedish online gaming company. This move paves the way for the American casino operator’s ambitious plan to expand and grow in the lucrative European gambling market.
In its offer, MGM submitted a recommended public tender offer for 61 crowns ($6.20) per share in cash. This is 44.2 percent higher than LeoVegas’ most recent closing price of 42.32 crowns which makes the acquisition a very enticing proposition.
If all goes according to plan and the acquisition gets the green light, MGM Resorts anticipates the purchase to be accretive to earnings and cash flow per share, as it will be supporting the acquisition with existing cash.
MGM Resorts’ CEO is upbeat about the move, describing it as a “strategic opportunity” that would allow the business to expand its global footprint. LeoVegas’ online casino and sports betting capabilities, as well as its large international client base, will aid in this endeavor.
“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… …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.”
MGM Resorts’ CEO & President Bill Hornbuckle
Moreover, MGM would also benefit from LeoVegas’ ability to build a stable and scalable technology infrastructure with improved product offerings. Their merged businesses will be able to develop inside established gaming categories and develop an incremental capacity to enter new areas thanks to their scale, brands, and experience.
As with all high-profile acquisitions, the details can seem a little hazy. Considering all that must go into the process, this is understandable. However, even a little information can be beneficial.
The acceptance period for the offer will begin in June 2022 and expire in August 2022. Shortly before the acceptance period begins, the offer document is likely to be made public. After that, settlement is expected to start in early September 2022 in case the offer is found to be unconditional by the end of August 2022. This offer is subject to regulatory approvals as well as other customary closing conditions. Keeping all that in mind, the deal will likely close in the second half of the fiscal year 2022.
Richard is our eyes and ears in the casino industry. He’s constantly traveling on the go to make sure he doesn’t miss a beat from the very heart of the gambling industry, visiting events all around the USA. His writing expertise and love of everything iGaming, along with his own contacts in the industry allows for compelling and accurate stories. Richard brings our readers all the latest developments from the casino floor with added value.
The recent outbreak of the coronavirus has had quite an impact on Macau. The very popular gaming and hospitality hub is always bustling with visitors from all over the world but since the outbreak, the number of visitors has reduced significantly. It is estimated that by the time February 1 rolled around, the number of […]
A Swedish gambler has turned a €10 bet into the whopping €1,442,545.44 at Hajper Casino, betting on NetEnt’s Arabian Nights progressive jackpot game. Hajper Casino Player Hits It Big with Arabian Nights A lucky Hajper Casino player has just hit €1,442,545.44 playing the all-time favorite Arabian Nights slot by NetEnt. The game managed to land […]
William Hill has received the formal approval of Nevada regulators to acquire CG Technology. The move allows the company to assume control over four additional casinos on the Las Vegas Strip and specifically their sports betting product. The four sportsbooks are available at The Venetian, The Palazzo, The Cosmopolitan and Silverton. William Hill first announced […]
