MGM Resorts to Purchase LeoVegas

American betting group MGM Resorts announced today that they've come to terms to purchase online betting operator LeoVegas for $607 million.

The deal will see MGM paying SEK61 per share ($6.16 USD), which will see BetMGM acquiring all equity in the company. The offer is a 44% premium on the LeoVegas share price as of April 29th. The LeoVegas board of directors voted to unanimously approve of the deal, although 90% of shareholders will have to approve if the deal is to close later this year.

Purchasing LeoVegas would give MGM Resorts a noticeable foothold in the European market, where LeoVegas operates in big markets like Sweden, the UK, Denmark, and others. For its part, MGM is active in large swaths of the United States with land casinos, and has spent millions of dollars marketing itself in the states in which it has an online presence.

"Our vision is to be the world's premiere gaming entertainment company, and this strategic opportunity with LeoVegas will allow us to continue to grow our reach throughout the world," said MGM Resorts CEO Bill Hornbuckle. "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.

"We believe that this offer creates a compelling opportunity that allows the combined teams of MGM Resorts and LeoVegas to accelerate our global digital gaming growth and fully realize the potential of our omnichannel strategy. We look forward to being able to welcome the LeoVegas team to our MGM Resorts family."

The LeoVegas board of directors issued a statement as well, adding: "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."

Without a doubt, this is an earth-shaking deal in the online realm, as there's hundreds of millions of dollars changing hands and will see further consolidation in an industry that's seen multiple such deals over the past year.

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