American land-based casino behemoth MGM Resorts International has lodged a $607 million proposal that would see it purchase the entire issued share capital of prominent iGaming operator LeoVegas AB.
The Las Vegas-headquartered firm used an official press release to declare that the proposition envisions buying all of the online casino and sportsbetting enterprise’s shares at an individual price of about $6.16 so as to continue its own ‘success and growth in digital gaming.’ The giant stated that the scheme will also allow it to expand internationally and use the brands, teams and ‘technology capabilities’ of LeoVegas AB to drive the further development of its own iGaming interests.
Established in 1987, MGM Resorts International is responsible for eleven gambling-friendly venues along the Las Vegas Strip including the MGM Grand Las Vegas, Bellagio Las Vegas and Excalibur Hotel and Casino and recently revealed that its net revenues for 2021 had risen by 88% year-on-year to top $9.7 billion. The operator of eight regional American casinos such as the MGM Springfield, MGM Grand Detroit and MGM National Harbor furthermore runs the mobile-friendly BetMGM online sportsbetting service in partnership with British iGaming colossus Entain.
Bill Hornbuckle (pictured) serves as the President and Chief Executive Officer for MGM Resorts International and he used the press release to disclose that the LeoVegas AB offer will be funded out of his company’s existing cash reserves and is expected to be immediately accretive to its earnings and cashflow per share. The experienced executive furthermore pronounced that the successful completion of this takeover is destined to create ‘a compelling opportunity’ to fully realize the potential of the firm’s ‘omni-channel strategy.’
Read a statement from Hornbuckle…
“Our vision is to be the world’s premier gaming entertainment company and this strategic opportunity with LeoVegas AB will allow us to continue to grow our reach throughout the world. We have achieved remarkable success with BetMGM in the United States and the acquisition of LeoVegas AB in Europe will expand our online gaming presence globally. We look forward to being able to welcome the LeoVegas AB team to our family.”
For its part and LeoVegas AB was established by Robin Ramm-Ericson and Gustaf Hagman in 2011 and is responsible for the online casinos at GoGoCasino.com, RoyalPanda.com, LeoVegas.com, PinkCasino.co.uk and LiveCasino.com. The Stockholm-headquartered operator generated some €393 million ($413.8 million) in aggregated revenues for the year to the end of March to take its associated adjusted earnings before interest, tax, depreciation and amortization up to about €48 million ($50.5 million).
MGM Resorts International proclaimed that the acceptance period for its LeoVegas AB offer is to commence from next month before expiring ‘on or around August of 2022’ with any resultant deal expected to be signed off during the second half of the year. However, it finished by asserting that its proposal is to additionally be ‘subject to certain regulatory approvals’ and ‘customary closing conditions’ as well as the consent of at least 90% of the target’s shareholders.