MGM Resorts is finalizing a multi-million dollar takeover

MGM Resorts is finalizing a multi-million dollar takeover

Summary:

MGM Resorts International completed the acquisition of the Swedish online sports betting brand, Leo Vegas, for $604 million. The shareholders voted overwhelmingly in favor of the deal. For the acquisition of the leading European online brand, MGM Resorts will pay the equivalent of US$5.72 per share.

MGM Resorts International, a North American gaming leader, announced last week that it has finalized the purchase of the Swedish online sports betting brand. 98% of the European operator’s shareholders accepted the deal, which was said to be worth US$604 million. Due to exchange rate fluctuations, the final price is lower than the initial offer.

With its BetMGM brand, MGM Resorts is a pioneer in both offline and online casino entertainment. The company operates brick-and-mortar casinos in several U.S. states while its online sportsbook is live in some regulated markets. It made its debut in New York’s mobile sports betting and Ontario’s iGaming sectors this year.

The deal has been completed

The shareholders of the company voted overwhelmingly in favor of the deal. The Swedish brand will receive approximately US$604 million, which is less than the original US$607 million of May 2, 2022, due to fluctuations in the market. For the acquisition of the leading European online brand, MGM Resorts will pay the equivalent of US$5.72 per share.

The all-cash acquisition was completed four months after the U.S. corporation made its initial takeover offer. In May, the company said that the merger offered the chance to establish a scaled, international iGaming operation. MGM Resorts will take full control of the operator this week, once a final share settlement is provided.

With the addition of the European catalogue to its already rich portfolio of gaming products, MGM Resorts will receive valuable synergies after the purchase. BetMGM includes its sportsbook brand. The company plans to keep the management of the company at their positions, as they will once again operate the company’s international platforms.

The corporation hopes to offset some of the losses from its BetMGM brand through the addition of LeoVegas to its consolidated balance sheet. The deal will finance the massive advertising and promotional costs of BetMGM, which has appeared in numerous North American iGaming markets in the last few years. The parent company had to cover millions of dollars in losses.

Expanding to new territories in the year 2022

MGM Resorts has been able to expand to new regulated markets this year. The New York State mobile sports wagering market was launched in January of this year. Nine operators were allowed to operate in the local market governed by the New York State Gaming Commission. The market had a total handle of over US$10 billion.

The first of its kind online and private iGaming market in Canada was launched by Ontario in April. BetM GM was one of the first operators to go live in the jurisdiction. Unlike the Empire State, the provincial sector offers both online gambling and sports betting, and the app is now available to play for eligible Ontarians.

Kimble wrote, “MGM Resorts Completes $604 Million Leo Vegas Acquisition”.