Swedish online gaming operator LeoVegas AB has announced the signing of an agreement that could see it spend just shy of $141.4 million in order to acquire Maltese firm Web Investments Limited along with the rights to its rival’s United Kingdom-facing domain at RoyalPanda.com.
Stockholm-based LeoVegas AB revealed that the deal is expected to close in December and will encompass an initial consideration of approximately $70.6 million along with an earn-out payment in late-2018 that could top-out at an identical amount.
LeoVegas AB is responsible for the mobile-friendly online casino at LeoVegas.com and stated that the purchase is being carried out by its LeoVegas International Limited subsidiary. To complete this and other ‘future acquisition opportunities’, it declared that it had secured $117.8 million in additional debt financing of which $47.1 million is from a new revolving credit facility.
Stockholm-listed LeoVegas AB proclaimed that RoyalPanda.com recently reported a 61% increase year-on-year in total third-quarter revenues to just over $11.5 million with half of these coming from United Kingdom-based customers. The online casino moreover saw mobile play account for around 65% of its takings while earnings before interest, tax, depreciation and amortization for the three-month period are expected to exceed $3.7 million.
Gustaf Hagman, Chief Executive Officer for LeoVegas AB, explained that the purchase will give his firm ‘two great brands with global appeal’ while strengthening its position in the United Kingdom’s online gambling market.
“Royal Panda has in a short time built up an efficient business with an exciting and strong brand,” said Hagman. “This is a major acquisition that we are carrying out following a carefully executed process. With the help of the strong symbolic value of RoyalPanda.com, the company has built a premium brand among gamers and we will complement LeoVegas.com with RoyalPanda.com.”