MGM Resorts makes $607m bid for LeoVegas3rd May 2022 7:57 am GMT
Shares in online gaming operator LeoVegas gained over 40 per cent Monday after MGM Resorts International announced a $607m bid to acquire the company.
The public tender offer at SEK61 per share represents a 44 per cent premium on the closing price of LeoVegas shares on Friday April 29.
LeoVegas was founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson and generated €393m in revenue in the twelve months ended March 31, 2022, with Adjusted EBITDA of €48m. The company holds licenses eight jurisdictions, primarily in Europe, and most recently launched in Ontario, Canada.
"Our vision is to be the world's premier gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world," said MGM Resorts CEO & president Bill Hornbuckle. "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."
The proposed acquisition has the unanimous support of LeoVegas’ board of directors and shareholders representing approximately 15.3 per cent of the outstanding shares in LeoVegas.
The acquisition is subject to acceptance by shareholders representing at least 90 per cent of LeoVegas shares, with the acceptance period due to commence on or around 3 June and expire on or around 30 August.
MGM Resorts said that the company has been following LeoVegas’ progress with considerable interest and is impressed with the performance of the business and its management team, adding that it does not intend to materially alter the operations of LeoVegas following the implementation of the offer.
Shares in LeoVegas AB (STO:LEO) gained 42.49 per cent on the news to close at SEK60.30 per share in Stockholm Monday.