MGM Resorts International has made a massive move to solidify its position in the global online gambling market. The casino operator offered $607 million to purchase one of the world’s most reputable online casinos – LeoVegas AB. By purchasing the Swedish gaming company, MGM is looking to increase its profits and influence in the European market.
The Current Offer Is $6.20 per Share
The proposed purchase is major news and MGM’s current offer stands at $6.20 per share. Not only is LeoVegas a reputable online casino brand, but it is extremely profitable as well. In a statement, the CEO of MGM, Bill Hornbuckle, noted that with the purchase, both brands will be able to accelerate their global growth and “fully realize the potential of our omnichannel strategy.”
Hornbuckle went on to say that the company had massive success with BetMGM in the US and the LeoVegas acquisition will allow the operator to increase its European footprint.
Profit is also one of the biggest reasons why MGM is looking to purchase LeoVegas. In the year ending on March 31, 2022, the online casino had a $414.24 million revenue before $50.59 million worth of EBITDA. In March, the operator was also given the green light to operate in Ontario.
Additionally, LeoVegas has been profitable since 2014. In the period between 2017 and 2021, it had a staggering annual growth rate of 16%.
MGM Hopes That It Can Close the Transaction in the Second Half of 2022
According to MGM’s release, if the “offer is declared unconditional” no later than August 2022, settlement can begin in September, and hence, the US casino giant is looking to close the transaction in the second half of 2022.
If the deal is closed, MGM will gain access to eight European jurisdictions, including the Nordic region. Not only that, but LeoVegas is also a reputable online sportsbook operator, which hints at a possible good business that can be done with BetMGM.
Recently, BetMGM also gained a license from the Alcohol and Gaming Commission of Ontario and started offering its services in April, when the online gambling market in the Canadian province was launched.
MGM’s offer acceptance period will begin in June and expire in August and LeoVegas has advised its shareholders to accept the $607 million offer. If this deal goes through then MGM will have the potential to become one of the most influential gambling operators in the US, Canada, and Europe. The company has been making quite a lot of moves since the start of 2022 as it is looking to take full control of its operations and buy back its shares.