Internet gaming site LeoVegas has announced that it's agreed to purchase the standing assets of Intellectual Property & Software Limited, and will absorb the company's online casino brands as a result.
The purchase deal will see LeoVegas paying IPS £65 million for the assets, which mainly consist of UK casino brands. The These brands include popular betting sites Slot Boss, UK Casino, Bet UK, and more. Those sites generate millions of dollars in revenues annually, with the company bringing in £11.7 million in the fourth quarter of 2017 alone.
LeoVegas is picking up the assets with the goal of strengthening it's UK presence. The company is prominent throughout Europe, but is working to become a top brand in the UK, where it faces still competition in a lucrative market. The company is financing the purchase, with a combination of revolving credit and straight interest financing.
Speaking about the deal LeoVegas CEO Gustaf Hagman said, "To be able at our six-year anniversary of the launch of LeoVegas to conduct this remarkable acquisition feels just great! Since its start, LeoVegas has pursued a highly successful global brand strategy. Following the acquisition of Royal Panda, LeoVegas now works with two scalable brands. We believe that in larger markets our global brands, LeoVegas and Royal Panda, can be complemented with a local, multibrand strategy.
"The U.K. market is a very large and mature market and that is the reason to work with several brands that attract various types of customers. In IPS we see several attractive attributes, and they have tremendous momentum in their growth and profitability. Combined with one of the market's most effective customer acquisition models, we are now gaining a firm stronghold in the U.K. with the acquisition of 85 employees with local expertise. With this acquisition, we are adding a company culture with a strong technology and product focus which is a perfect fit with LeoVegas' to further strengthen the Group's position as the leading GameTech company."