MGM Resorts Big Purchase
United States-based hotel, casino, and sportsbooks MGM Resorts announced its plans to purchase LeoVegas, a Swedish online gaming company worth $575 million. As of Monday, the deal became official when the LeoVega board of directors gave a unanimous vote in favor of the sale.
Bill Hornbuckle, the CEO and President of MGM Resorts believes his company’s recent acquisition is the beginning of MGM’s vision of becoming the premier gaming entertainment company on the planet.
“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.” Hornbuckle commented.
A well-thought-out strategy will see MGM acquire LeoVegas and their business that extends throughout eight European locations, in combination with the firm’s expertise in management that’s created the company’s mobile-first tech platform that graduates its multi-brand resume covers all aspects of iGaming.
In the previous twelve months, LeoVegas has profited €393 million from corporate revenue and €48 million in their earnings before interest, taxes, depreciation, and amortization – further extending MGM’s purchase as a profitable venture.
MGM highlighted its belief in securing the deal. In coalition with senior investors, they’d received an immutable effort from the company founder Gustaf Hagman with 15% of LegVegas’ overall shareholding to sell the company under recommended terms.
As Per LeoVegas’ Board
LeoVegas’ board recommendation to investors said: “MGM values the skills and talents of LeoVegas’ management and employees and intends to continue safeguarding the excellent relationship that LeoVegas has with its employees.”
“Given MGM’s current knowledge of LeoVegas and in light of current market conditions, MGM does not intend to materially alter the operations of LeoVegas following the implementation of the Offer, subject, of course, to MGM’s employees and management or the existing organization and operations, including the terms of employment and business locations.”
A finalized offer during an acceptance period is expected to begin action during the first week of June 2022, with an expiration lasting until August 2022.