-1 C
Friday, January 27, 2023

MGM (NYSE: MGM) to Buy LeoVegas

MGM Resorts International (NYSE: MGM) has launched a recommended public tender offer for 100 percent of the shares of LeoVegas AB (Publ) (LeoVegas) at a cash price of SEK 61.00 per share, for a total tender value of roughly $607 million. The deal will be paid for using cash on hand and is projected to boost MGM Resorts’ profitability and cash flow per share.

LeoVegas is a significant global online gambling company with licenses in eight jurisdictions, particularly in the Nordics and the rest of Europe. It was established in 2011 by Gustaf Hagman and Robin Ramm-Ericson. During the last twelve months ended March 31, 2022, LeoVegas earned EUR 393 million in revenue and EUR 48 million in Adjusted EBITDA. The company’s headquarters are in Stockholm, but it also has offices in Malta, the United Kingdom, and Milan.

Furthermore, MGM Resorts thinks that acquiring LeoVegas will present the company with a once-in-a-lifetime opportunity to build a scalable worldwide online gambling business. This acquisition will give strategic opportunities to expand the company’s product portfolio and drive growth. MGM Resorts expects LeoVegas’ online casino and sports betting capabilities, as well as its strong client base outside of the United States, to help it extend its global presence.

This acquisition will also provide an experienced online gaming management team as well as excellent technological skills. The management team at LeoVegas has proved its ability to build a scalable and strong technology infrastructure with innovative product offerings. Since 2014, LeoVegas has become a profitable high-growth platform.

LeoVegas’ sales grew at a compound annual growth rate of 16 percent from 2017 to 2021 while remaining profitable. The merged operations will be ready to broaden within current gaming segments and create incremental chances to enter new areas thanks to MGM Resorts’ scale, brands, and expertise.

Additionally, the offer’s acceptance period is projected to begin in or around June 2022 and end in or around August 2022. Shortly before the start of the acceptance period, an offer document for the offer is scheduled to be made public. Settlement is projected to begin in early September 2022, assuming the offer is deemed unconditional no later than the end of August 2022.

More articles


Please enter your comment!
Please enter your name here

Latest article

Sign up now for our 100% FREE Penny Stock Newsletter

Privacy Policy. we will never share your email with anyone.