MGM Resorts Offering $607 Million for European Gaming Company

MGM Resorts International has offered $607 million for Swedish gaming company LeoVegas AB.

The global hospitality and entertainment giant will pay for the purchase with cash and is offering $6.20 per share. The offer is scheduled to begin in June and expire in August.

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For the year ending March 31, LeoVegas generated about $414.2 million in revenue and earnings before interest, taxes, depreciation, and amortization of about $50.6 million, based on current exchange rates.

MGM holds a dominant position in the U.S. digital gaming and sports wagering industry. It is also growing its presence in Ontario, Canada’s largest province, where LeoVegas operates. With its eight gaming licenses across Europe, Leo Vegas would offer MGM the opportunity for expansion into the continent. Also, as a sportsbook operator, it could align well with MGM’s BetMGM business.

“We believe that this offer creates a compelling opportunity that allows the combined teams . . . to accelerate our global digital gaming growth and fully realize the potential of our omnichannel strategy,” MGM Chief Executive Officer Bill Hornbuckle said in a statement.

LeoVegas has been profitable since 2014, and between 2017 and 2021 its sales compounded annual growth rate was 16%. MGM had one of the strongest balance sheets in the gaming industry last year, with $4.8 billion in cash and a $1.67 billion undrawn credit revolver.