Las Vegas-based MGM Resorts International announced this week that it has cleared the final hurdle in its acquisition of the Swedish gaming company, LeoVegas AB after 96% of LeoVegas shareholders accepted their $604 million offer. Share settlement is expected to occur on September 7, 2022.
While not a multi-billion dollar acquisition, MGM Resorts International’s successful bid to take over online casino giant LeoVegas still represents the largest handshake in history between land-based gambling interests and their online kin.
Of course, the evolution was expected as more and more US states opened their doors to intrastate online gambling, and mega international gambling companies like MGM got out of the real estate business and became purely operational entities. But nobody outside of some very small circles directly involved in the possible acquisition expected to see the MGM Lion offer the King of Casino a place in its family of businesses when the plan was announced earlier this year.
The entire LeoVegas board gave a blessing to the May offer of SEK 61.00 in cash per share (about $5.67). The offer represented a 44% increase in the going price of shares at the close of trading the day before the offer was announced in late April.
Share Settlement September 7
All of the necessary governmental and regulatory approvals have been secured so there is nothing left in the way of the share settlement being initiated on September 7, 2022.
Bill Hornbuckle, MGM Resorts’ chief executive, and president said: “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.”
The deal breaks MGM into the international, European, and specifically Nordic markets in a way that could have taken the company decades to accomplish organically. As the shares are transferred, LeoVegas AB delists from Nasdaq Stockholm, and a bevy of popular up-and-running sites come into play for MGM with the LeoVegas C-suite mostly or fully intact, the synergies should flow melodically.
Adding an Online Powerhouse to MGM
Adding to the BetMGM brand found in most regulated US betting markets – 21.co.uk, betuk.com, pinkcasino.co.uk, leovegas.com, slotboss.co.uk, and royalpanda.com and Royal Panda Sportsbook in the nascent Ontario market will allow MGM to hit the ground running.
LeoVegas Group CEO and co-founder Gustaf Hagman said: “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.”
Source: MGM to acquire LeoVegas next week as shareholders accept offer, iGaming Business, September 1, 2022.