(Reuters) MGM Resorts International (NYSE: MGM) made an offer to purchase LeoVegas AB of Sweden for approximately $607 million on Monday, paving the way for the US casino operator to expand its presence in Europe.
LeoVegas shares closed at 42.32 crowns on Monday, and MGM wants to buy them for 61 crowns ($6.20) per share in cash. That’s a 44.2 percent increase from the previous closing price of 42.32 crowns.
MGM has been looking into the sports betting market through its joint venture, BetMGM, which predicted more than $1.3 billion in revenue for 2022 early this year. As the coronavirus spread, more people were interested in online gambling.
“With BetMGM in the United States, we have achieved incredible success, and with the purchase of LeoVegas in Europe, we will significantly extend our worldwide online gaming footprint, “MGM Resorts Chief Executive Officer Bill Hornbuckle said in a statement.
LeoVegas, which has licenses in eight countries, predominantly in the Nordics and the rest of Europe, said that it has advised its shareholders to accept MGM’s offer.
The offer’s acceptance period will begin in June and end in or around August 2022.
(1 dollar equals 9.8452 Swedish crowns).