MGM Resorts International has moved closer to completing the acquisition of LeoVegas AB after announcing that its public tender offer for the shares of the operator has been accepted by 96% of its shareholders at a per share price of SEK 61.00.
The per share price is equivalent to a total tender value of approximately $604m, and the settlement of the shares is expected to be initiated on or around September 7.
Back in May, MGM declared plans to acquire the Swedish online gaming firm in a $607m deal with an offer of a 44.1% premium on LeoVegas’ then closing price of SEK 42.32. It received the necessary governmental clearances for the recommended public offer in August.
“Joining forces with MGM Resorts is a major win for LeoVegas and we’re excited to begin working with our new teammates to build upon the work we’ve done over the last 10 years,” commented Gustaf Hagman, CEO of LeoVegas Group.
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”
LeoVegas was founded in 2011 by Hagman and Robin Ramm-Ericson and is licensed in nine jurisdictions, mainly in the Nordics and the rest of Europe. In FY22, the operator generated $395.2m in revenue and $46.2m in adjusted EBITDA.
MGM Resorts once again highlighted why the LeoVegas acquisition provides an opportunity for the company to produce “a scaled global online gaming business”.
The operator noted how the acquisition offers “strategic opportunities to accelerate growth and product offerings”, an “experienced online gaming management team and superior technology capabilities”, and a “commitment to continued profitable growth”.
“The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide,” added Bill Hornbuckle, CEO and President of MGM Resorts.
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximize the full potential of our omnichannel strategy.”
LeoVegas is also registered as a gaming operator in the Canadian province of Ontario. It offers casino, live casino, and betting under the brands LeoVegas and Royal Panda.