MGM Resorts has notified this afternoon that its public tender offer has been accepted by 96% of LeoVegas AB shareholders.
Initiated on 2 May, the board of MGM proposed an SEK 61 (€5.90) cash-per-share takeover offer to acquire LeoVegas outright at a deal consideration of approximately $604m (€600m).
Securing LeoVegas investor approval, MGM governance announced that settlement of the share is expected to be initiated ‘on or around 7 September 2022’.
“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,” said MGM Resorts’ CEO & President Bill Hornbuckle.
“We look forward to welcoming the LeoVegas team and are excited to begin working with them to grow our global digital gaming business and maximize the full potential of our omnichannel strategy.”
Prior to the shareholder vote, MGM’s deal had been formerly recommended by LeoVegas co-founder and CEO Gustaf Hagman, alongside further senior investors representing 15% of the company’s outstanding shareholding.
The transaction sees MGM execute its first igaming-specific M&A outside of US shores, in which it deemed LeoVegas as imperative to its plans to establish a ‘globally-scaled and dominant’ online gambling business.
Of strategic importance, MGM underlined that its online gambling growth strategy will be strengthened by the addition of LeoVegas’ executive management team that has “demonstrated the ability to develop a robust and scalable technology platform with advanced product offerings.”
“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 ten years,” said LeoVegas Group CEO Gustaf Hagman.
“MGM Resorts is a premier gaming entertainment company and we look forward to leveraging their expertise to further our long-term strategic goals.”