MGM Resorts Offers To Buy Sweden's LeoVegas for $607 million
Written by Ian
Published date · May 9, 2022 | Last Updated · Dec. 14, 2022 | Read Time: 2 mins
On May 2, 2022, MGM Resorts International offered to buy the online gaming company based in Sweden LeoVegas AB. The deal was for roughly $607 million, a transaction which will help MGM Resorts to pave their way from just in America to overseas in Europe. With MGM being one of the premier online gambling operators through BetMGM, it’s no wonder that they want to further their reach beyond the United States and look to other avenues of revenue. Just earlier this year, BetMGM was forecasted at $1.3 billion in revenue for 2022 with the online casino and sportsbook industry still riding high after the coronavirus pandemic spiked online gambling revenues.
In a statement released after the offer, Bill Hornbuckle, Chief Executive Officer of MGM Resorts says that BetMGM has achieved incredible success in the United States and the purchase of LeoVegas in Europe will expand the BetMGM and their online gaming portfolio globally. Founded in 2011, LeoVegas AB is a mobile gaming provider of online casino and sportsbook services to numerous international markets. LeoVegas was named Online Casino of the Year from 2018-2021, having a strong name in the online gaming industry.
MGM Resorts provided a public tender offer of $6.20 (61 crowns) per share in cash, which would be 44.2% higher than the previous closing price of LeoVegas’ listing of 42.34 crowns. LeoVegas recommended to the shareholders that they should accept the MGM Resorts offer. The period of acceptance for the offer begins in June and expires around August. While LeoVegas primary markets are in the United Kingdom and Nordic countries (Sweden, Denmark, Finland, and Norway), they also have an additional presence in Spain and Italy as well as markets in Latin America with operations in Chile and Peru.