The land-based gaming giant recently secured a $607m (£513m/€605m) deal to acquire LeoVegas, a move aimed at expanding its online gambling presence in Europe and other international markets. The board of LeoVegas unanimously recommended this offer. MGM has obtained all necessary regulatory approvals and government clearances, but there are still other requirements outlined in the official offer document that need to be fulfilled. The deadline for accepting the offer is August 30th, with MGM having until August 31st to satisfy all conditions. The acquisition is expected to be finalized around September 7th.
MGM’s CEO and president, Bill Hornbuckle, expressed that this strategic opportunity with LeoVegas aligns with their vision of becoming the world’s premier gaming entertainment company. He highlighted the successful growth of BetMGM in the US and emphasized that the acquisition of LeoVegas will further expand their online gaming presence globally. Combining the teams of MGM Resorts and LeoVegas will accelerate their digital gaming growth and fully capitalize on their omnichannel strategy.
In its latest financial report, MGM reported a significant year-on-year revenue increase of 54.3% for the first half of the 2022 financial year. During an earnings call discussing these results, Hornbuckle hinted at potential future expansions into new territories beyond the LeoVegas deal, acknowledging the need for larger-scale endeavors.
Following the announcement of the deal, Swedish authorities initiated a preliminary investigation into suspected insider trading of LeoVegas shares in connection with this acquisition.
