MGM Makes a $778.2 million Surprise Offer for LeoVegas
Published: May 3, 2022
MGM Resorts is set to acquire the Swedish online gaming giant LeoVegas, after making a $778.2 million offer.
The bid made by the US casino operator represents a 44.1% premium on the gaming company’s closing price and has already been approved by its board. The acquisition should help MGM Resorts launch a scaled global online casino operation.
According to MGM, there are three main reasons for this acquisition. First, it represents a strategic opportunity to speed up growth and an overall presence outside the US.
Next, the move will allow MGM to benefit from an experienced management team and remarkable technological capabilities. The third reason is the operator’s commitment to continued growth.
MGM has obtained a statement from the Swedish Securities Council confirming the company’s incentive plan for LeoVegas’ employees is compatible with the Takeover Rules.
Commenting on the move, Gustav Hagman, CEO and co-founder of LeoVegas, wrote on LinkedIn:
As the largest shareholder, I support the offer MGM Resorts announced today. I see huge potential in what LeoVegas and MGM could achieve together. MGM Resorts have been working on creating the best offline casino experience for a long time, and we’ve done the same for the online experience. Merging the two is a very exciting prospect. MGM Resorts has an ambitious agenda and financial muscles that would enable LeoVegas to grow quicker. Together we can make LeoVegas the largest iGaming brand in the world! Given these circumstances, I think MGM is a perfect partner – and that’s why I am supporting this offer.
Founded in 2011 and headquartered in Sweden, LeoVegas is one of the leading names in online gambling. The operator is licensed in eight jurisdictions, offering an extensive range of gaming content, including online slots, live casino, and bingo.