MGM Resorts Will Buy Out LeoVegas For $607 Million

MGM Resorts and LeoVegas shake hands on a $607 million acquisition deal that will see the igaming operator end up with new owners.

MGM-Purchased-Leo-Vegas

MGM Resorts purchased one of the biggest names in the online gambling world LeoVegas for $607 million after the board of directors unanimously voted to go through with the deal. According to the details of the agreement, MGM Resorts is set to pay $6.16 per one share in order to purchase all of LeoVegas‘ shares for a premium of 44% in comparison to the price of the shares on the 29th of April. Moreover, as per MGM, the company will pay for the acquisition of LeoVegas with funds from its cash reserves.

Speaking on the purchase, the president and CEO of MGM Resorts, Bill Hornbuckle, states that one of the main goals for the company is to break out on the European market, and consequently, go after the global online gambling industry.

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 US, and with the acquisition of LeoVegas in Europe we will expand our online gaming presence globally.

Bill Hornbuckle – CEO of MGM Resorts

Furthermore, the board of directors at LeoVegas said that the decision to sell is nothing but progressive, considering that one of their main goals has always been at the forefront of the igaming industry. In addition, the board recognizes that the deal with MGM can only benefit LeoVegas in the long run, and as such should be beneficial for both the employees and the company itself.

LeoVegas operates in an industry which is characterised by, inter alia, high innovation pace, new regulation and consolidation,” the board said. “In this context, the board of directors believes that the industrial logic and strategic fit between LeoVegas and MGM is attractive and should serve both the company and its employees well in the future.

LeoVegas – Board of Directors

While MGM Resorts already purchased LeoVegas, the deal will only be official if 90% of the board of directors at LeoVegas agree to go through with the sale. However, considering the largest shareholders at LeoVegas including the chairman and the member with the most shares Gustaf Hagman (15.3%), are already firmly set to make this $607 million acquisition happen later in 2022.

This deal only goes to show the magnitude of LeoVegas in the world of online gambling. Not only we are talking about one of the most dedicated and hard-working online casino operators in the world, but Leo Vegas is also one of the most popular casinos on several contintes as well.

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