MGM Resorts is making a major move on the global gaming market with the announcement of a $607 million offer to purchase the Swedish operator LeoVegas. The offer, which already has the support of the LeoVegas Board of Directors, would put MGM Resorts in a position to compete in the growing US online casino market, as well as putting it in possession of a brand that’s already competing in the international online casino market.
Under the terms of the proposed deal, MGM Resorts would purchase all outstanding shares of LeoVegas for 61 SEK ($6.16 USD) each. That price shows how much MGM Resorts really wants LeoVegas, as it represents a 44.1 percent premium over the stock’s current value.
The company’s BetMGM online sportsbook is already thriving in the booming US market, and the company sees the LeoVegas acquisition as an opportunity to insert an established brand, and its attendant experience, into that same market. And since LeoVegas is already producing revenue in international markets, MGM Resorts would instantly expand its global reach. Over the past year, LeoVegas generated $413 million in revenue and approximately $50 million in profit, so it’s an acquisition that won’t need much work getting off the ground.
In a press release announcing the offer, MGM Resorts’ CEO & President Bill Hornbuckle offered his thoughts on the deal saying, “”Our vision is to be the world’s premier gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world. 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. We believe that this offer creates a compelling opportunity that allows the combined teams of MGM Resorts and LeoVegas to accelerate our global digital gaming growth and fully realize the potential of our omnichannel strategy. We look forward to being able to welcome the LeoVegas team to our MGM Resorts family.”
MGM Resorts plans on retaining most of LeoVegas’ current staff if the deal goes through.