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

MGM Resorts International MGM has commenced a recommended public tender offer to acquire LeoVegas AB, a 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.

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