MGM Resorts International announced Monday that it will likely acquire a Swedish online gambling company.
MGM It said in its announcement that it had begun a recommended public bidding offer for 100% of LeoVegas shares at a price of Swedish Krona 61.00 cash per share, equivalent to a total bid value of approximately $607 million. MGM Shares rose about five percent after the announcement, before paring gains.
The market capitalization of the Las Vegas-based casino operator is over $18 billion.
MGM It is looking to boost its online gambling business through international markets. LeoVegas brand is not expected to be introduced in the US
“Our vision is to be the leading gaming entertainment company in the world, and this strategic opportunity with LeoVegas will allow us to continue expanding our reach around the world,” MGM Resorts Executive Director and President Bill Hornbuckle. “We have had significant success with BetMGM in the US, and with the acquisition of LeoVegas in Europe, we will expand our online gaming presence globally.”
. added MGM She believes “this offer creates a compelling opportunity for joint teams of MGM Resorts and LeoVegas to accelerate the growth of global digital gaming and realize the full potential of our multi-channel strategy. We look forward to being able to welcome Team LeoVegas to our group MGM family resorts.
Founded in 2011, LeoVegas has licenses in eight jurisdictions primarily in the Nordic countries and the rest of Europe. LeoVegas . was created euro $393 million in revenue and euro 48 million on average EBITDA During the past twelve months ending March 31, 2022. The company is headquartered in Stockholm and has offices in Malta, United Kingdom and Milan.
MGM He said LeoVegas has been operating profitably since 2014. From 2017 to 2021, the compound annual growth rate of LeoVegas’ revenue was 16%.
The period for accepting the Offer is expected to begin on or about June 2022 and end on or around August 2022. The offer is subject to certain regulatory approvals, receipt of valid bids for over 90% of LeoVegas shares and usual closing conditions. It is expected to be completed during the second half of the 2022 fiscal year.