MGM Says 96 Percent of LeoVegas Investors Accept Takeover Offer

MGM Resorts International (NYSE:MGM) said today that 96% of LeoVegas group AB investors voted inwards favor of the casino operator’s takeover of the Swedish gaming company.

The cost at which those investors recognized a public pinnace tender is the eq of $5.72 a share, valuing the target at $604 trillion – slightly less than the $607 million tender revealed in May.

The mop up of this dealings represents a major milepost for MGM Resorts as we uphold to pursue our strategy of growing our online gaming footmark worldwide,” said MGM Resorts’ CEO & President Bill Hornbuckle inward a statement.

“Major milestone” may follow hyperbole, especially for a $604 one thousand thousand acquisition by a $13.46 1000000000000 company. Still, there’s no more denying the LeoVegas purchase provides the emptor with an effective boulevard for European expansion. While the BetMGM brand is extremely visible inward the US and Canada, it lacks recognition inwards Europe — i of the world’s to the highest degree maturate gaming markets.

Shrewd Acquisition past MGM

The Mandalay Bay manipulator is funding the sell with immediate payment on hand, signification its equipoise tack won’t be loaded down with young debt simply inwards the name of dealmaking. There are other perks for the buyer, including the fact that LeoVegas testament follow accretive to MGM’s earnings per share.

In LeoVegas, MGM could add non only a intimate epithet to the European online gaming scene, but a profitable ane as substantially – a rarity inward the US iGaming industry. For the twelvemonth finish March 31, 2022, LeoVegas generated revenue of $414.24 million and earnings before interest, taxes, wear and tear and amortisation (EBITDA) of $50.59 million, based on stream change rates.

“LeoVegas has operated profitably as a high-growth program since 2014. From 2017 to 2021, LeoVegas’ revenues compounded annual growth charge per unit was 16%, patch maintaining strong profitability. MGM Resorts’ scale, brands, and expertise will reserve the combined businesses to expand within existing gaming segments and ply incremental opportunities to go in new areas,” according to the statement.

Settlement of the tendered shares is expected to be finalized on or around Sept. 7, indicating MGM’s initial forecast that the dealing will closelipped in the indorsement half of this yr appears accurate.

MGM Targeting Geographic Expansion

Last week, MGM won regulatory commendation to gain the manipulator of the leovegas.com, slotboss.co.uk, pinkcasino.co.uk, betuk.com, and 21.co.uk brands. With the acquisition, the cassino behemoth could turn a forcefulness in unexampled markets.

“LeoVegas’ online gambling casino and sports betting capabilities and strong customer base of operations out of doors of the US is expected to farther spread out MGM Resorts’ presence around the world,” added the purchaser inward the statement.

MGM has signaled a willingness to pee deals, and with BetMGM nearing profitability, more acquisitions could be on the way, though the troupe hasn’t overtly signaled it’s currently mulling specific opportunities.