Continuing our success and growth in digital
gaming, MGM Resorts is expanding internationally with the
acquisition of LeoVegas
LeoVegas' global presence, strong team and
technology capabilities to drive MGM Resorts' digital gaming and
sports betting international development
LAS
VEGAS, May 2, 2022 /PRNewswire/ -- MGM Resorts
International (NYSE: MGM) ("MGM Resorts" or the "Company") today
announced that it has commenced a recommended public tender offer
for 100% of the shares of LeoVegas AB (publ) ("LeoVegas") at a
price of SEK 61.00 in cash per share,
equivalent to a total tender value of approximately $607 millioni. The acquisition will be
financed with existing cash and is expected to be accretive to MGM
Resorts' earnings and cash flow per share.
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"Our vision is to be the world's premier 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 & President Bill
Hornbuckle. "We have achieved remarkable success with BetMGM
in the U.S., 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."
Founded in 2011 by Gustaf Hagman
and Robin Ramm-Ericson, LeoVegas is
a leading global online gaming company with licenses in
eight jurisdictions primarily in the Nordics and rest of
Europe. LeoVegas generated
EUR 393 million in revenue and
EUR 48 million in Adjusted
EBITDAii during the last twelve months ended
March 31, 2022. The business is
headquartered in Stockholm with
offices in Malta, United Kingdom and Milan.
MGM Resorts believes the acquisition of LeoVegas will provide a
unique opportunity for the Company to create a scaled global online
gaming business with the following attributes:
- Strategic Opportunities to Accelerate Growth and Product
Offerings – LeoVegas' online casino and sports betting
capabilities and strong customer base outside of the U.S. is
expected to further expand MGM Resorts' presence around the
world.
- Experienced Online Gaming Management Team and Superior
Technology Capabilities – LeoVegas' management team has
demonstrated the ability to develop a robust and scalable
technology platform with advanced product offerings.
- Commitment to Continued Profitable Growth – LeoVegas has
operated profitably as a high-growth platform since 2014. From 2017
to 2021, LeoVegas' revenues compounded annual growth rate was 16%,
while maintaining strong profitability. MGM Resorts' scale, brands
and expertise will allow the combined businesses to expand within
existing gaming segments and provide incremental opportunities to
enter new areas.
The acceptance period of the offer is expected to commence on or
around June 2022 and expire on or
around August 2022. An offer document
regarding the offer is expected to be made public shortly before
the commencement of the acceptance period. Assuming that the offer
is declared unconditional no later than around end of August 2022, settlement is expected to begin
around early September 2022.
The offer is subject to certain regulatory approvals, the
receipt of valid tenders of more than 90% of LeoVegas' shares and
customary closing conditions. It is expected to be completed during
the second half of fiscal year 2022.
Advisors
MGM Resorts has retained Goldman Sachs & Co. LLC. as
financial advisor, Advokatfirman Vinge KB and Weil, Gotshal &
Manges LLP as legal counsel and Fox Rothschild as gaming counsel in
connection with the offer.
About MGM Resorts International
MGM Resorts International (NYSE: MGM) is an S&P 500® global
entertainment company with national and international locations
featuring best-in-class hotels and casinos, state-of-the-art
meetings and conference spaces, incredible live and theatrical
entertainment experiences, and an extensive array of restaurant,
nightlife and retail offerings. MGM Resorts creates immersive,
iconic experiences through its suite of Las Vegas-inspired brands. The MGM Resorts
portfolio encompasses 32 unique hotel and gaming destinations
globally, including some of the most recognizable resort brands in
the industry. The Company's 50/50 venture, BetMGM, LLC, offers U.S.
sports betting and online gaming through market-leading brands,
including BetMGM and partypoker. The Company is currently pursuing
targeted expansion in Asia through
the integrated resort opportunity in Japan. Through its "Focused on What Matters:
Embracing Humanity and Protecting the Planet" philosophy, MGM
Resorts commits to creating a more sustainable future, while
striving to make a bigger difference in the lives of its employees,
guests, and in the communities where it operates. The global
employees of MGM Resorts are proud of their company for being
recognized as one of FORTUNE® Magazine's World's Most Admired
Companies®. For more information, please visit us at
www.mgmresorts.com. Please also connect with us @MGMResortsIntl on
Twitter as well as Facebook and Instagram.
Forward-Looking Statements
Statements in this press release relating to future status or
circumstances, including statements regarding future performance,
growth and other trend projections and their underlying
assumptions, statements regarding plans, objectives, intentions and
expectations with respect to future financial results, events,
operations, services, product development and potential and other
effects of the offer, are forward-looking statements. These
statements may generally, but not always, be identified by the use
of words such as "anticipates", "intends", "expects", "believes",
"estimates", "plans", "will be" or similar expressions. By their
nature, forward-looking statements involve risk and uncertainty
because they relate to events and depend on circumstances that will
occur in the future. Actual results and developments may differ
materially from those expressed in, or implied or projected by
these forward-looking statements due to many factors, many of which
are outside the control of MGM Resorts. Forward-looking statements
appear in a number of places throughout this announcement and the
information incorporated by reference into this announcement and
may include statements regarding the expectations on the closing of
the offering and the intentions, beliefs or current expectations of
MGM Resorts or LeoVegas concerning, amongst other things: (i)
future capital expenditures, expenses, revenues, earnings,
synergies, economic performance, indebtedness, financial condition,
dividend policy, losses and future prospects; (ii) business and
management strategies, the expansion and growth of MGM Resorts' or
LeoVegas' business operations and potential synergies resulting
from the offer; and (iii) the effects of government regulation and
industry changes on the business of MGM Resorts or LeoVegas. Any
forward-looking statements made herein speak only as of the date on
which they are announced. Except as required by the Takeover Rules
or applicable law or regulations, MGM Resorts expressly disclaims
any obligation or undertaking to publicly announce updates or
revisions to any forward-looking statements contained in the offer
document to reflect any change in expectations with regard thereto
or any change in events, conditions or circumstances on which any
such statement is based. The reader should, however, consult any
additional disclosures that MGM Resorts or LeoVegas have made or
may make.
A long form of this release and further information is available
at: http://investors.mgmresorts.com/investors/leovegas
MGM RESORTS CONTACTS
Investment Community:
ANDREW
CHAPMAN, Director of Investor Relations
(702) 693-8711, achapman@mgmresorts.com
News Media:
BRIAN
AHERN, Executive Director of Communications
media@mgmresorts.com
i Based upon 97,652,970 outstanding shares of
LeoVegas and a USD/SEK exchange rate of 9.814.
ii Definition of Adjusted EBITDA per LeoVegas'
financial reports. The amount has been calculated as the sum of the
Adjusted EBITDA figures in LeoVegas' financial reports for the
second, third and fourth quarters 2021 and the first quarter
2022.
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SOURCE MGM Resorts International