MGM Resorts Goes For LeoVegas In $607 Million Bid

In a move that would serve to significantly expand their business’ iGaming portfolio, MGM Resorts have approached Swedish gaming giant LeoVegas with a lucrative takeover offer. Senior leaders at the Stockholm-headquartered company have ‘unanimously recommended’ to shareholders that MGM’s bid should be accepted.

The prospective acquisition values LeoVegas at SEK 61 ($6.16) per share, equating to an overall figure of SEK 5.96bn ($607m). In purchasing shares at SEK 61, the Nevada-based firm leveraged a 44% premium on the closing price of 29^th April, when shares ended the day at SEK 42.3 ($4.27).

LeoVegas currently operates in eight different territories, with Europe acting as its exclusive theatre of interest. Throughout the last financial year (April 21-March 22), the Scandinavian firm generated €393m ($412.8m) in gross gaming revenue, and delivered an adjusted EBITDA figure of €48m ($50.4m). If the deal gets over the line, MGM Resorts will acquire a company renowned for its innovative approach to mobile gaming technology, and one which has engineered a high-performance platform capable of facilitating a variety of iGaming brands.

‘’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 realise the potential of our omnichannel strategy’’ said Bill Hornbuckle, MGM Chief Executive and President, adding ‘’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’’.

This isn’t the first time that MGM have set their stall out with considerable ambition. A collaborative sportsbook venture with powerhouse operative Entain has reaped significant reward in recent times, with its ‘BetMGM’ subsidiary delivering some impressive numbers in the United States’ ever expanding sports betting marketplace.