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MGM Resorts Offers To Acquire Online Gaming Company LeoVegas For $607M

Benzinga · 05/02/2022 06:03
  • MGM Resorts International (NYSE:MGM) has commenced a recommended public tender offer to acquire LeoVegas ABa Swedish mobile gaming company, for SEK 61.00 in cash per share, totaling $607 million.
  • The acceptance period of the offer is expected to commence in June 2022 and expire in August 2022.
  • Founded in 2011 by Gustaf Hagman and Robin Ramm-Ericson, LeoVegas is a global online gaming company with licenses in eight jurisdictions, primarily in the Nordics and the rest of Europe.
  • LeoVegas generated €393 million in revenue and €48 million in Adjusted EBITDA during the last twelve months ended March 31, 2022.
  • "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," said CEO Bill Hornbuckle.
  • MGM plans to finance the acquisition with existing cash and expects the deal to be accretive to earnings and cash flow per share.
  • MGM held $5.2 billion in cash and equivalents as of December 31, 2021.
  • MGM Resorts expects the offer to complete in early September 2022. It expects LeoVegas to drive its digital gaming and sports betting international development.
  • Price Action: MGM shares closed lower by 2.54% at $41.04 on Friday.