MGM Resorts is a step closer to significantly expanding its global footprint after LeoVegas shareholders overwhelmingly approved the company’s $640 million buyout offer.
Under the terms of the acquisition deal, LeoVegas shareholders will receive SEK61 ($5.67) for each outstanding share in their possession. That marks a sweet 44 percent premium from the day the deal was announced, and the price was locked in, back on April 29.
LeoVegas was founded back in 2011 and primarily served European and, more specifically, Nordic markets. The company is licensed in nine international markets, which will significantly expand MGM’s global reach at a time when the US gaming market is growing increasingly competitive. LeoVegas’ compounded growth rate of 16 percent annually was another factor that made the company an appealing acquisition for MGM.
MGM Resorts’ CEO & President Bill Hornbuckle commented on the deal in a press release saying, “The completion of this transaction represents a major milestone for MGM Resorts as we continue to pursue our strategy of growing our online gaming footprint worldwide. We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximize the full potential of our omnichannel strategy.”
LeoVegas Group CEO Gustaf Hagman was similarly enthusiastic about the deal adding, “Joining forces with MGM Resorts is a major win for LeoVegas and we’re excited to begin working with our new teammates to build upon the work we’ve done over the last 10 years. MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”
With the approval of the shareholders secured, MGM Resorts is now only looking at a few minor regulatory hurdles, that should be completed by September 7, that will complete the acquisition.