MGM Resorts International Acquires LeoVegas
The gaming industry will never be the same after MGM Resorts International completes the acquisition of 96% shares of Leo Vegas group. The biggest takeover of the year is waiting for final signatures and should be completed in the first half of September 2022. How big is this takeover? Well, MGM Group will pay SEK61.00 in cash per share, making a total of $604m, €602.8m, or £521.1m. Wow. However, the number is far less impressive knowing that MGM Resorts International is a titan worth $13.46 billion.
MGM Has All The Support It Needs
According to some sources, MGM’s proposition was unanimously approved by all LeoVegas board members back in May. The companies were aiming at 7 September as the deadline to close the deal. The date was set, assuming all regulatory requirements have been fulfilled. Additionally, they have received a seal of approval from all relevant authorities.
Bill Hornbuckle, MGM Resorts’ chief executive and the president, described the deal as a significant milestone for the company, revealing the long-term goal of MGM is to secure its position as the worldwide leader in the gaming world. Hornbuckle expressed their welcome to the entire LeoVegas team and shared their hopes that the growth will continue at a steady pace, all to maximize the company’s strategies.
The Importance of LeoVegas for MGM
At the moment, MGM’s most recognizable online gaming brand is BETMGM. BetMGM is very popular in the USA and Canada, but not so much in other parts of the world. However, LeoVegas will crack the door open for the European market, which remains to be the most coveted one. Thanks to the acquisition, MGM will also get access to other rising stars in the casino sky such as the Indian market. LeoVegas could deliver the much-needed recognition outside Northern America.
MGM said that from 2017 to 2021, LeoVegas had annual growth of 16%. The Group remained profitable throughout the 4 years, making it the perfect addition to MGM’s portfolio. To make things even better, in the first half of 2022, LeoVegas experienced a 54.3% year-on-year rise in revenue, which translates to €394m (€46m EBITDA). Now, the US gaming company hopes the combined expertise of both businesses will provide “incremental opportunities”.
Gustaf Hagman, LeoVegas’ group chief executive, didn’t even try to hide their excitement. Hagman said LeoVegas is excited to start working with American teammates. They are also hopeful the progress they’ve been building for the past 10 years will continue.
About MGM Resorts International
MGM Resorts International is an American global hospitality company, with a strong emphasis on entertainment. It operates some of the best-known brick-and-mortar casinos out there, such as Bellagio and Mandalay Bay. As of 2020, it employed more than 74,500 workers on both its online and retail projects.
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