Las Vegas-based MGM Resorts International announced that it has cleared the final obstacle in its acquisition of Swedish gaming company LeoVegas AB, after 96% of LeoVegas shareholders accepted their $604 million offer.
The investors approved the price offer which is equivalent to $5.72 per share, valuing the company at $604 million, a bit less than the $607 million offer first revealed in May.
Share Settlement finalized September 7
All of the required governmental and regulatory approvals have been secured, so there is nothing hindering the share settlement, finalized on September 7, 2022.
MGM Resorts chief executive and president Bill Hornbuckle 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."
"Major milestone" sounds like an exaggeration, especially for a $604 million acquisition by a $13 billion company. But still, the fact remains that the LeoVegas purchase provides MGM with an effective strategy for European expansion. While the BetMGM brand is highly visible in the US and Canada, it lacks recognition in Europe - one of the world's most mature gambling markets.
The deal translates to MGM's break into the international, European and specifically Nordic markets in a way that could have taken the company decades to accomplish, if done organically. As the shares are transferred, LeoVegas AB will delist 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 collaborations should flow harmoniously.
The Latest Online Powerhouse added to MGM
Last week, MGM won regulatory approval to acquire the operator of the leovegas.com, slotboss.co.uk, pinkcasino.co.uk, betuk.com, and 21.co.uk brands. The casino giant could become a force in new markets with the acquisition.
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."